Are we heading back down or back up? $34450 is the answer.

I have been examining the Fib retracement levels of corrective waves, to see what is the maximum limit that a corrective wave can retrace before resuming the impulsive direction. The answer is the halfway point between Full Retracement (1) and the 786 Fib retracement level. This aggressive correction usually occurs on a wave 2, which is the case here.

We see an aggressive wave down from the $34500 area, and the mid way between 1 and 786 is $34450. If the price bounces aggressively off this area and goes back down again, I think we are definitely on the way down again. If we pass the $34450 area, then it would lead me to believe that this price drop to $33700 is the corrective wave, not the impulsive wave and therefore the potential for more upside exists.

See here:

.. for further analysis.