Bitcoin (BITFINEX) recently built support on diagonal line 1 after breaking through longer term support lines 2 and 3. Each of the past 3 bitcoin prices spikes resulted in % moves of 82%, 105% and 82% again, respectively (red labels). Each correction ends when the price dips down to meet the 100 day moving average (pink line) WHILE in the region of the 62-78% retracement. So working backward, I drew a fib retracement starting with the 62 and 78% retracement on top of the 100 day MA (indicating plenty of room for a blow off top, potentially upto 1750 USD).
Then I drew a 4th % projection of 82% which shows a move to roughly over 1600 USD. As evidenced above, 82 % represents the minimum % move during price spikes in the past year
RSI and MACD could be running to old highs which could also signal a continuation and potential blow off top.
NOTE : todays daily bar could be forming a doji, indicating a reversal, but no conclusions at this time.
Then I drew a 4th % projection of 82% which shows a move to roughly over 1600 USD. As evidenced above, 82 % represents the minimum % move during price spikes in the past year
RSI and MACD could be running to old highs which could also signal a continuation and potential blow off top.
NOTE : todays daily bar could be forming a doji, indicating a reversal, but no conclusions at this time.