A 61.8 per cent Fibonacci projection off the $28,800 January 22 low, $58,354 February high and subsequent $43,021 correction gave a target at $61,285. This target was only just exceeded before the market corrected.
The current pullback from a record high could in itself have major technical significance for bitcoin bulls. A low of $54,555 removed a 38.2 per cent Fibonacci retrace level taken off the recent $43,021 to $61,781 rally. This then opens up the more significant 50 per cent retracement level at $52,401.
However, a deeper and more protracted adjustment could form the basis of a right shoulder within a head and shoulders pattern, offering potential for a sizeable move up.
The next projection off the Jan. 22 low, February high and correction gives a bull target at $65,600. But if the head and shoulders pattern plays out, objectives could be set much higher.
