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.
Meanwhile, the number of long positions – those betting on
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
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
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
"We will see the bottom in
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
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
"There is a lot of fresh liquidity flowing into