Bitcoin prints all-time high around $67000

Written by

October 22, 2021

Technical Analysis:

Bitcoin rallied to all-time high around $67000 mark on Thursday before pulling back. The crypto is trading around $63000 at the time of writing and could drop through $52500 mark. Please note that it is also the fibonacci 0.382 retracement of the recent rally between $28600 and $67000.

Bitcoin seems to have completed a larger degree Wave (5) around $67000 mark. If correct, the crypto might be setting up for a huge bearish reversal ahead. A break below $28600 will confirm that bears are back in control.

A larger degree Wave 4 had terminated around $4000 mark in March 2020. Since then, Bitcoin has rallied through $67000 high subdividing into five waves. High probability remains for a bearish reversal going forward.

Alternatively, the recent upswing from $28600 through $67000 could be Wave 1 of (5). In that case, a corrective drop might terminate around $52500 or up to $42000-43000 zone. Thereafter, Bitcoin could resume higher towards $80000 at least.

The crypto has produced an engulfing bearish candlestick pattern on the daily chart. It means potential remains for a drop lower at least toward $52500 mark. Traders might want to stay aside for a while before entering fresh long positions there.

 Prepared by

Finacademy Technical Team

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