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11.05.202115:54 Forex Analysis & Reviews: Bitcoin medium-term analysis and expectations

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

So far Bitcoin price action has not been much different from our expectations. At the end of April we warned bears that a bounce was coming in Bitcoin prices and we should expect a move towards $57,000 and the 61.8% Fibonacci retracement of the decline.

Exchange Rates 11.05.2021 analysis

Price made a high just above $59,000 and just above the 61.8% retracement level. Since then price has turned lower towards $54,000 and the rejection could very well lead to a new lower low than that of April. Price has formed a higher low and if it continues to trade weak, we should see more lower lows and lower highs in price action.

Exchange Rates 11.05.2021 analysis

Red lines - Fibonacci extensions

Bitcoin has the potential to revisit the April lows around $47,000 and there are increased chances of breaking them also. In fact our favorite scenario is bearish as long as price is below $59,500. Our target is at $42,000 and with a small possibility of extending towards $30,000. This scenario will be confirmed if price breaks below the April low around $47,000. I consider the bounce from $47,000 only a short-term counter trend bounce as I believe Bitcoin has already started a major correction phase.

Alexandros Yfantis
Analytical expert of InstaForex
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