In May 2017 analyst Nicola Duke predicted that a bitcoin price of $2,800 could be the level at which bitcoin begins its fall. She said the price is likely to hit $1,780, but could even fall as far as $1,470. We are still at the 2,000 levels.
According to her Fibonacci analysis, the way bull markets typically work is that you'll have a pullback that stops when it retraces a key percentage of a previous move higher—these key percentages all come from so-called Fibonacci ratios. One of those ratios is 61.8 percent.
So she expects this particular wave, known as the fourth wave, to last 61.8 percent of how long wave two lasted, which means the rally after the correction would start in January.
"We will see the bottom in startof January, that is when stock markets typically tend to have a correction as well," Duke said
But after that, there should be a sustained rally to $3,350 and then $4,480 in 2018, Duke said.
So while the long-term prospect of bitcoin seems to be positive, in the near-term, traders could see a pull-back. There is no cause for alarm.
