Bitcoin (BTC/USD) breaks out with conviction to a new record high as it moves above the prior peak of $4,979.90 reached in the beginning of September.

That peak was followed by a 40% drop in 13 days before it found support at $2,972. Buyers then came back in to drive bitcoin back up over the subsequent 27 days, including today where it is fast approaching its next potential interim target. As of the publishing time, bitcoin had reached a high of $5,300, a gain of over 78% above the mid-September swing low.

The next potential technical targets are derived from Fibonacci analysis projections and extensions. Since bitcoin is heading towards prices never before seen, prior history cannot be used as a guide. However, also keep in mind that the most recent several rallies ranged from gains of approximately 77% to over 200%, so these price targets have a good chance of being only temporary.

Approximate targets derived from Fibonacci analysis:

127% extension of most recent decline:$5,523

161.8% extension of most recent decline:$6,214

161.8% projection of most recent prior rally (ABCD):$6,963

161.8% projection of most recent prior rally:$8,068

Bruce Powers, CMT
Chief Technical Analyst
http://www.marketstoday.net/

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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