Crypto-Carnage - Bitcoin Is Down $500 From Overnight Highs

Cryptocurrencies are crashing this morning...

After a 70% surge following the fork to a new record high at $4400, Bitcoin is getting battered this morning...

 

Dow $500 from overnight highs...

 

As a reminder, Goldman Sachs' chief technician Sheba Jafari increased her forecast for Bitcoin to over $4800... but warned that the virtual currency could then drop to $2221...

Now that the market is getting closer to reaching this level, it’s going to be important to take note of any/all signs of trend exhaustion.

 

There is of note a 2.618 extension which runs as far as $4,827.

 

 

Once a full 5-wave sequence is in place, the market should in theory enter a corrective phase.

 

This can last at least one third of the time it took to complete the preceding advance and retrace at least 38.2% of the entire move.

 

From current levels, that would measure out to ~2,221.