All this year, we were in an uptrend. Then we fell from 58 to 43, a correction, but that was not that much and was healthy for a continuation of the bull market.
In that local downtrend, we bounced off of 43. In comes the fib retracement. Once we retrace .786, it starts to become probable of a reversal (of that specific trend that you're drawing the fib retracement for). So that's like a fib resistance in this case. After we went to All time highs of 62, we retraced ending in the big dump from last night. We ended up bouncing right off this previous key fib resistance and are sitting on it as support. Perfect bullish scenario. (see screen 1)
Then, in the actual bounce itself from 43 to 62, that pump is an uptrend. If we draw a fib for that we see that we ended up retracing to exactly the .382 level and are now on top of that, ALSO very healthy. The .23 and .38 retracements are pretty much STANDARD retracements for a continuation (I always think of a pump going up and then making a lightning bolt shape and continuing up). The 23 and 38 are healthy (see screen 2)
So we obviously retraced the whole correction from 58 and reached ATH and then backtested the key reversal .786 level as support last night AND just did a .38 retracement of the bottom. All bullish overall, and now could be the lowest we see until 62+.
This appears to be an absolute confirmation of the end of the correction. I'm not trying to tell anyone what to do. I'm not even opening any trades right now. But I'm very bullish for good reason, and I expect this to reach new ATH this week.
In that local downtrend, we bounced off of 43. In comes the fib retracement. Once we retrace .786, it starts to become probable of a reversal (of that specific trend that you're drawing the fib retracement for). So that's like a fib resistance in this case. After we went to All time highs of 62, we retraced ending in the big dump from last night. We ended up bouncing right off this previous key fib resistance and are sitting on it as support. Perfect bullish scenario. (see screen 1)
Then, in the actual bounce itself from 43 to 62, that pump is an uptrend. If we draw a fib for that we see that we ended up retracing to exactly the .382 level and are now on top of that, ALSO very healthy. The .23 and .38 retracements are pretty much STANDARD retracements for a continuation (I always think of a pump going up and then making a lightning bolt shape and continuing up). The 23 and 38 are healthy (see screen 2)
So we obviously retraced the whole correction from 58 and reached ATH and then backtested the key reversal .786 level as support last night AND just did a .38 retracement of the bottom. All bullish overall, and now could be the lowest we see until 62+.
This appears to be an absolute confirmation of the end of the correction. I'm not trying to tell anyone what to do. I'm not even opening any trades right now. But I'm very bullish for good reason, and I expect this to reach new ATH this week.