BTC completed its 3rd Elliot wave when it climaxed at $19,891. It originally took off from its launch pad (blue support) at $162. That was an exciting ride! But, like any roller coaster, what goes up must come down.
BTC is about to enter free-fall mode where gravity will accelerate the price downward. This is not surprising in the least bit since BTC has been overbought for a long time. If you don't believe me then pull up a monthly chart of the stochastic RSI.
It may not be prudent to buy into BTC even at these discounted prices since momentum and sine wave (on the daily chart) suggest violent moves in the negative direction. That being said, this is not advice to buy or sell BTC so please do not construe this post as such.
Personally, I'm looking to enter the market once the price touches the broadening wedge support for a third time. I have a super low target of $1,826. That particular value was derived by dividing $6,000 (previous low) by the following ratio: $19,891 / $6,000. You'll see the same fib ratio if you use the three drives pattern (1.72).
My preferred price target touches the blue historical support. The price found support on this line twice (in 2013) and again when the price tanked to $162 (3rd touch). I think we might see a 4th touch but only time will tell.
Do not be deceived, we are in a bear market and BTC has crashed! It seems obvious to state that but I do because some may be tempted to rush back into the market too early. No need to FOMO buy BTC. That's incredibly dumb since this is a crashed market.
Notice how the price already broke the .618 fib level when the price plummeted to $6,000. This implies that the price will head towards the .786 fib level.
No one knows the exact bottom. All that we can do is make educated guesses based on the information and tools that we have. But, I can tell you, it isn't unreasonable to assume that the Mt. Gox trustee may dump more Bitcoins onto the market. If he does, then I expect the price to get slaughtered because panic sellers will dump their coins when they see those fat red candles.
The last two fib levels are ad hoc levels. Those levels are in play if and only if the price breaks $6,000. In my personal opinion, $6,000 is inevitable since we already broke the .618 and this is the 3rd bearish impulse wave.
Let's see how this plays out.
Finally, it would be best to buy BTC in a demand zone with leverage.
Buy Zone:
$4,384 - $1,819
BTC is about to enter free-fall mode where gravity will accelerate the price downward. This is not surprising in the least bit since BTC has been overbought for a long time. If you don't believe me then pull up a monthly chart of the stochastic RSI.
It may not be prudent to buy into BTC even at these discounted prices since momentum and sine wave (on the daily chart) suggest violent moves in the negative direction. That being said, this is not advice to buy or sell BTC so please do not construe this post as such.
Personally, I'm looking to enter the market once the price touches the broadening wedge support for a third time. I have a super low target of $1,826. That particular value was derived by dividing $6,000 (previous low) by the following ratio: $19,891 / $6,000. You'll see the same fib ratio if you use the three drives pattern (1.72).
My preferred price target touches the blue historical support. The price found support on this line twice (in 2013) and again when the price tanked to $162 (3rd touch). I think we might see a 4th touch but only time will tell.
Do not be deceived, we are in a bear market and BTC has crashed! It seems obvious to state that but I do because some may be tempted to rush back into the market too early. No need to FOMO buy BTC. That's incredibly dumb since this is a crashed market.
Notice how the price already broke the .618 fib level when the price plummeted to $6,000. This implies that the price will head towards the .786 fib level.
No one knows the exact bottom. All that we can do is make educated guesses based on the information and tools that we have. But, I can tell you, it isn't unreasonable to assume that the Mt. Gox trustee may dump more Bitcoins onto the market. If he does, then I expect the price to get slaughtered because panic sellers will dump their coins when they see those fat red candles.
The last two fib levels are ad hoc levels. Those levels are in play if and only if the price breaks $6,000. In my personal opinion, $6,000 is inevitable since we already broke the .618 and this is the 3rd bearish impulse wave.
Let's see how this plays out.
Finally, it would be best to buy BTC in a demand zone with leverage.
Buy Zone:
$4,384 - $1,819
Comment:
BTC bullish pennant scenario:
Comment:
@Andrew138,
I agree! If only BTC was more decentralized. Five percent of BTC holders own 95% of circulating supply. Whales will definitely scoop up these coins at a discounted price.
I agree! If only BTC was more decentralized. Five percent of BTC holders own 95% of circulating supply. Whales will definitely scoop up these coins at a discounted price.
Comment:
Questions for your consideration regarding Bitcoin:
Thanks for your comment. Yes, the trustee dumped 40,000 bitcoins onto the open market. He's been selling batches since September. He still has another 160,000 bitcoins which could be offloaded onto the open market.
www.newsbtc.com/2018...h-related-to-mt-gox/
www.coindesk.com/mt-...itcoin-bitcoin-cash/
cointelegraph.com/ne...mt-gox-four-years-on