Main cryptocurrency chart BTCUSD has been in a bearish correction since the end of June. Asset has tested the medium-term downtrend line (red line) several times and is currently trading relatively closely. The structure of movement itself, if you look closely, has a large number of local Fibo patterns.
To analyze them, let's introduce following symbols:
point A - annual maximum of June 26,
point A1 - local minimum in the segment AB,
point B - local maximum of June 10,
point B1 - local minimum in the segment BC,
point C is the local maximum of August 6,
point C1 is the local minimum on the segment CE,
point E is the moment of a local trend breakthrough,
point D is the moment of a medium-term trend breakthrough.
I Let's apply Fibonacci retracements to downtrends AA1, BB1 and CC1, in order to interesting pattern be revealed. Each subsequent local maximum on the correction trend reaches the Fibo level of 78.6%. This is point B for AA1 and point C for BB1. If we assume that the regularity is preserved, then point G - correction for CC1 should be located in the area of $11600-11700. Thus, a medium-term trend line should be broken at point D, which should be the beginning of a new upward movement and completion of current consolidation.
II The very structure of medium-term consolidation is a triangle. This triangle is already formed by more than 75%, which, according to the rules of technocal analysis involves its breakthroughin the near foreseeable future. It is believed that after breakthrough the range of movement in this direction should be equal to the figure size. The height of the triangle is about $4800. If breach occurs at point D at the level of $11200, then BTCUSD should grow up to 11200 + 4800 =$16000.
Before consolidation began, Bitcoin was trading in a strong parabolic bull trend (from $4000 to $13800). Together they form a figure called pennant, which is a figure of trend continuation.
III Let's denote the segment AB by one and apply the Fibonacci time periods indicator. Then point C will be on time interval No.3, and point E on interval No.5. Next interval No.8 is located on October 12, so at this time it can be expected next important point at the price chart (local maximum / minimum / breakthrough of the trendline).
Summing up, a number of factors, local and global patterns indicate that BTC will finish consolidation in the nearest future and begin a new growth phase with a target of $16000, and new important point of interest will be formed in mid-October.
To analyze them, let's introduce following symbols:
point A - annual maximum of June 26,
point A1 - local minimum in the segment AB,
point B - local maximum of June 10,
point B1 - local minimum in the segment BC,
point C is the local maximum of August 6,
point C1 is the local minimum on the segment CE,
point E is the moment of a local trend breakthrough,
point D is the moment of a medium-term trend breakthrough.
I Let's apply Fibonacci retracements to downtrends AA1, BB1 and CC1, in order to interesting pattern be revealed. Each subsequent local maximum on the correction trend reaches the Fibo level of 78.6%. This is point B for AA1 and point C for BB1. If we assume that the regularity is preserved, then point G - correction for CC1 should be located in the area of $11600-11700. Thus, a medium-term trend line should be broken at point D, which should be the beginning of a new upward movement and completion of current consolidation.
II The very structure of medium-term consolidation is a triangle. This triangle is already formed by more than 75%, which, according to the rules of technocal analysis involves its breakthroughin the near foreseeable future. It is believed that after breakthrough the range of movement in this direction should be equal to the figure size. The height of the triangle is about $4800. If breach occurs at point D at the level of $11200, then BTCUSD should grow up to 11200 + 4800 =$16000.
Before consolidation began, Bitcoin was trading in a strong parabolic bull trend (from $4000 to $13800). Together they form a figure called pennant, which is a figure of trend continuation.
III Let's denote the segment AB by one and apply the Fibonacci time periods indicator. Then point C will be on time interval No.3, and point E on interval No.5. Next interval No.8 is located on October 12, so at this time it can be expected next important point at the price chart (local maximum / minimum / breakthrough of the trendline).
Summing up, a number of factors, local and global patterns indicate that BTC will finish consolidation in the nearest future and begin a new growth phase with a target of $16000, and new important point of interest will be formed in mid-October.