Bitcoin: Clearly Overextended - Fib Speed Resistance Fan (May 6)

X Force Global Analysis:

Fibonacci fans are sets of trendlines drawn from a peak through a set of points dictated by Fibonacci retracements. To create them, a trader draws a trendline off which to base the fan, usually covering the low and high prices of a security over a given period of time. Fibonacci Fan lines can be drawn to identify potential support or reversal areas, especially for assets like Bitcoin where technical reasoning can be the most difficult. Once a pullback starts, the fan lines provide chartists with key levels to watch as prices correct.

At the time of writing, we can see that Bitcoin is clearly overextended with not much left to grow; furthermore, although there is a chance for Bitcoin to bounce on the .25 level and continue to grow, it sets us up for more chances for a blowoff top.

Either way, we believe that what goes up, must go down.

Trade Safe.