- Celsius price rallied 45% over the past two weeks to set up a second swing high at $8.
- CEL is likely to retrace roughly 16% to $6.75 or $6.45.
- Although a sweep above $8 is plausible, a decisive close above $8.50 might invalidate the bearish thesis.
Celsius price has been on a bullish ascent for the past two weeks, albeit a choppy run-up. The leg-up ceased momentum at the previous swing high, creating a potential reversal point for CEL.
Celsius price to reverse its gains
Celsius price created the first swing high on April 9 at $8 and retraced nearly 31%. On May 20, CEL kick-started another rally that pushed roughly 45%, creating an equal high.
Typically, equal highs, aka double tops, are signs of reversal. However, investors should not expect Celsius price to head lower promptly. In fact, a sweep of the highs to set up a temporary swing high above $8 seems likely.
Either way, a correction to the 50% Fibonacci retracement level at $6.75 seems likely. In certain conditions, Celsius price might dip as low as $6.45, coinciding with the 62% Fibonacci retracement level.
While a retracement up to 79% Fibonacci level at $6.02 seems plausible in dire circumstances, extended trading below this barrier could indicate that a retracement to the range low at $5.5 could be likely.
CEL/USD 1-day chart
While there is not much Celsius price action available to the upside, investors can expect a decisive close above $8.50 as a sign of invalidation.
In such a case, CEL might even rally to $8.67.
