Bitcoin is close to hitting a price that could see a 47 percent correction, according to one analyst, following a huge rally for the cryptocurrency that has led it to record highs.On Thursday, bitcoin hit an all-time high of $2791.70, according to CoinDesk data, marking a 180 percent rally year-to-date.Meanwhile, the number of long positions – those betting on bitcoin to rise – has risen 18.2 percent, while short positions – those thinking the cryptocurrency will fall – have declined 10 percent since the start of the week, showing that traders are getting more bullish on the cryptocurrency, according to data from Bitfinex.One technical analyst, who looks at historical trading patterns to determine future price moves, told CNBC that the $2,800 could mark a level of resistance where the bitcoin pulls back.Bitcoin was as little as $9 off of that price on Thursday morning.Nicola Duke, an analyst at analysis platform Forex Analytix, uses a form of technical analysis known as Fibonacci retracement, which looks at the peaks and troughs of previous "waves" or rallies and falls in bitcoin to get a sense of where the future price of an asset could move.

In "wave two" of bitcoin which began in the fall of 2013 and bottomed in January 2015, the price of the cryptocurrency rallied sharply for several months before seeing a steady decline.Following January 2015, the asset began to rally again.Currently, the bitcoin world is in "wave three" and according to Duke's analysis, $2,800 could be the level at which bitcoin begins its fall.The price is likely to hit $1,780, but could even fall as far as $1,470, Duke told CNBC.This would mark a 46.5 percent decline from Thursday's high.According to 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 start of 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.However, not all agree with Duke's forecast.Bitcoin to hit $6,000?A number of reasons have pushed bitcoin to record highs, such as legalization of the currency in Japan for payments, boosted interest from Korea, as well as the conclusion of a debate about the future of the cryptocurrency.Fifty-six companies around the world and 83 percent of bitcoin miners supported the "Bitcoin Scaling Agreement," according to the Digital Currency Group.The document lays out an upgrade that should increase bitcoin's transaction capacity.Because of these factors, Aurelien Menant, CEO of Gatecoin, a regulated crytocurrency exchange, said bitcoin could hit $6,000, revising a forecast from earlier in the year of $3,000."There is a lot of fresh liquidity flowing into bitcoin, thanks to a surge in interest among investors in Asia, notably Japan and Korea, coupled with a resolution to the scaling debate.

I would not be surprised to see the bitcoin price doubling again to around $6000 by the end of the year," Menant said.buy bitcoin visa electronToday was a lackluster day for both ethereum and for Bitcoin.asic in litecoinEach of the various cryptocoins I follow had such a boring day.bitcoin tycoon gameThis leaves me in a bit of a pickle, because all I can really write is:  “Read yesterday’s column.bitcoin sudokuNothing has really changed.”   This is not the sort of column likely to garner much interest.blue bitcoin pill reviewI will show the updated charts for reference, and then we will take a cruise down a path we have not looked before.bitcoin usd yahoo finance

Let’s start with bitcoin’s daily chart: As we can see, pricetime is working it’s way through the 3rd arc pair.It is making progress, but if it continues moving sideways it will not clear the arc pair for another week.Next is Ethereum’s daily chart: Here I have drawn a pitchfork on the Aug 2015 low, the June 2016 high, and Aug 2016 low.As these words are being written price is bouncing off the 1.272 extension of that pitchfork.I don’t expect that support to break, but I would of course recommend a stop-loss below that support, just in case.For the purposes of this column I typically rely on Gann Squares and Pitchforks.Today I want to demonstrate a few Fibonacci tools.Let’s start with a Fibonacci spiral: Centering the spiral on the high and beginning the spiral from the Aug low, we see that pricetime will likely encounter the spiral in about a week, which is the same timeframe we hypothesize that price will encounter the 2nd of the 3rd arc pairs seen in the first chart above.

Could be a coincidence…  But note also that the blue vertical line marked ‘2’ is 90 degrees from a sharp one day spike at line ‘1’, and that is about the same point in time the spiral will be met.Here we have a single point Fibonacci spiral centered on the Jan 2015 low.Amazingly, pricetime will likely encounter THAT spiral at about the same place.Is this proof of an impending reversal or acceleration in a week’s time?No, but these sorts of clusters of geometric phenomenon should be enough to make one pay attention.Remember:  The author is a trader who is subject to all manner of error in judgement.Do your own research, and be prepared to take full responsibility for your own trades.Join our Telegram Channel!Get Bitcoin News stories in Telegram × DismissAs you can see the blue spiral is drawn from the beginning and end of Wave A, and on a 1:1 scale, hits the peak of Wave C perfectly.This spiral ended up being a very good in this position at this scale.So with that knowledge you could expect that it would continue to act as resistance and that Wave E will probably not go past it.

Based on this new information, I tried to make some new targets for the end of Wave E. This prediction is based off of and the yellow spiral, which bounces off of the two highlighted points perfectly.Along with it being a perfect of Wave D, as well as a slew of other fibs that line up right on that point (which I hid to reduce clutter), I figure that this is a good spot for Wave E to end with regards to price and time.I mentioned in my other chart Wave E is very difficult to predict, so this just gives us some new information to look for.Remember to always let the new incoming information organize itself, instead of trying to massage it into old categories!Let's see how this plays out.:) I want to add this chart, It shows the spirals on a and how each major dump has followed a spiral channel which have progressively gotten tighter with each dump: (this chart is on a 3:1 scale) To elaborate further on the spirals: They seem to be very with other Fibonacci measurements, and when viewed at certain scaling, they can act as very good s/r levels and time indicators.

As you can see from the , the last three major drops have occurred within fib spiral-channels when the individual spirals are drawn from the beginning of a to the end of the a and from the begging of a to the end of c of each of the major corrections preceding the major drops, with scaling set to 3:1 (see ).The is something I discovered a little over 5 weeks ago.It seems that since we have broken out of the yellow spiral (which connects one of the major downswings and the ) we will get a major move either in the up or down direction.However, it seems that we made an attempt at an upswing and failed, and are now beginning a major decline based on the alligators trend changing pretty violently to the downside, and the spiral resistance on the 12H 1:1 timeframe.Although, if we start to break upwards, beginning with breaking the 12H spiral, we will most likely continue in that direction.There's an old Chinese proverb: "Unless we change directions, we are likely to end up where we are headed."

My strategy when trading them is just as an early indicator of bullish/bearishness because, generally, if you get a direct bounce off a spiral you will usually continue in that direction, so long as you scaled your chart properly.And since this 12H spiral already acted as major resistance you can expect for it to be a sign of bullishness if it gets broken (it should close above the spiral, not necessarily just a wick).If we break above the spiral the next major signal would be breaking above 294.In which case the daily trend will probably continue going up and we will start another major uptrend.However, I think the likely scenario here is that the spirals act as resistance and we somewhat follow the trend on the down into the 100s or below.Once we break out of all these large spirals then I believe that is when we will start the next major rise.Here is a minor edit to this chart.I remembered that if I just connected the yellow spiral to one of the other points on the spiral it essentially creates the same spiral without having to use an imaginary anchor.