Hello fellas, welcome to the another day of the uncertainty and flatness for bitcoin. As a mother of all cryptocurrency, it's very tense that the price is moving with a lot of uncertainty and doubt. Now, I want to acknowledge you all with my current bitcoin bias which is very important.
First of all, I want to explain about the golden pocket. The golden pocket is the area between the .618 -.65 on fibonacci retracement. And the .618 itself is also called golden ratio, It appears many times in geometry, art, architecture and other areas including trading. Whenever the price is touching this golden ratio zone, you must respect it as a major support or resistance because that's how trading work. You can't go against this golden ratio otherwise you'll keep losing.
On the chart attached, we can see that on current down trend moves, there are 3 impulses moves and 3 corrective moves. On every impulse moves, I give the series of swing high and swing low, This labeled point is where I connect the fibonacci retracement to measure the corrective wave target. And on the 1st and the 2nd corrective waves, the top of corrective waves end up with a wick at these golden pocket range! is that a coincident? very interesting!
Now, I want to show you at the 3rd series of impulse and corrective waves, It's where we are right now. The golden pocket zone is above the white resistance trend line. But, current price action shows us there are a lot of uncertainty and fear which make the bulls losing momentum slowly. The corrective waves 3 is trending slightly below 0.5 fibonacci retracement level. But, there is still opportunity for the price to have a spike to golden pocket zone although relatively small.
The consequence if the price fails to break this 0.5 fib levels as resistance, we might see a horrific down trend moves and potential lower low. This is simply because we see the bear are in complete control over the market with the momentum of correction wave is diminishing from .618 to .5 fibonacci level.
I just can say, stay away from bitcoin right now. Longing at resistance is not a good idea, but shorting without the confirmation of lower L and lower H clearly is not wise. Although I'm on bearish sight, I'm still lack of confidence to open any position right now.
First of all, I want to explain about the golden pocket. The golden pocket is the area between the .618 -.65 on fibonacci retracement. And the .618 itself is also called golden ratio, It appears many times in geometry, art, architecture and other areas including trading. Whenever the price is touching this golden ratio zone, you must respect it as a major support or resistance because that's how trading work. You can't go against this golden ratio otherwise you'll keep losing.
On the chart attached, we can see that on current down trend moves, there are 3 impulses moves and 3 corrective moves. On every impulse moves, I give the series of swing high and swing low, This labeled point is where I connect the fibonacci retracement to measure the corrective wave target. And on the 1st and the 2nd corrective waves, the top of corrective waves end up with a wick at these golden pocket range! is that a coincident? very interesting!
Now, I want to show you at the 3rd series of impulse and corrective waves, It's where we are right now. The golden pocket zone is above the white resistance trend line. But, current price action shows us there are a lot of uncertainty and fear which make the bulls losing momentum slowly. The corrective waves 3 is trending slightly below 0.5 fibonacci retracement level. But, there is still opportunity for the price to have a spike to golden pocket zone although relatively small.
The consequence if the price fails to break this 0.5 fib levels as resistance, we might see a horrific down trend moves and potential lower low. This is simply because we see the bear are in complete control over the market with the momentum of correction wave is diminishing from .618 to .5 fibonacci level.
I just can say, stay away from bitcoin right now. Longing at resistance is not a good idea, but shorting without the confirmation of lower L and lower H clearly is not wise. Although I'm on bearish sight, I'm still lack of confidence to open any position right now.
