After the drop below the big red symmetrical triangle we are in a clear downtrend now! This article tries to show the next big targets for Bitcoin. For a bigger overview you should read my last TA first:
1: Elliott Wave to 6000$
2: Retracement of a parabolic uptrend There is a rule of thumb for the retracement of a parabolic uptrend. We should retrace to approx. the 0.786 Fibonacci Retracement +/- 10%! Depending where we start the count of the parabolic uptrend, we have different targets:
6500$:
5500$: If we see the parallel channel as the longterm trend and if we assume the breakout as the start of the parabolic uptrend, than 5500$ is our retracement target.
5000$: If we change the chart from a "Log-Chart" to a normal one, than we have different targets too. This assumption is not really accurate and we will have a range between 4700$-5000$.
3: ABC correction to 3000$ After a big uptrend we normally have an ABC correction. A 1 to 1.168 extention would give us a target nearby 3000$, which is also a big longterm horizontal support. Furthermore it would be in a range nearby the longterm parallel channel.
4: The bloody support of Bitcoin: A lot of people are claiming now, that the price of bitcoin will converge to its mining cost. The average cost of mining one bitcoin are at USA/Russia approx. 4700$ and at 3100$ for china!
4: DYOR
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Comparing the shorts vs longs, than we will see that we have a big global bearish sentiment currently.
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Currently we are forming a falling wegde. This is a likely outcome with my above-mentioned targets: