One of my fauvorite tools for managing BTC supports and resistances are Fibonacci levels. Moreover, setting BTC targets is not a hard task when Fibos are properly interpreted. There is a high correlation between the last bearish/bullish wave before a low/high and its Fibos, with regard to the next highs/lows to be achieved.
Looking at the chart, we see the last bearish wave prior to the low at 5800 usd. It gave two Fibo extensions, 7500 and 8500. Both were reached within a month. In this case the last bullish wave before the start of the drop (which is almost identical in terms of price change to the previous bearish one) gives two targets, 6450 and 5175 roughly speaking. Well, we have reached the first one, from here a sideways move is expected for the next days and a more than probable second move would take BTC to the 2.618 extension located at 5100-5200 area.
Please note that many Fibos converge at this level, when this happens those levels are very likely to be tested.
We may be facing the end of this bearish market, just keep in mind these levels and trade safely!
Looking at the chart, we see the last bearish wave prior to the low at 5800 usd. It gave two Fibo extensions, 7500 and 8500. Both were reached within a month. In this case the last bullish wave before the start of the drop (which is almost identical in terms of price change to the previous bearish one) gives two targets, 6450 and 5175 roughly speaking. Well, we have reached the first one, from here a sideways move is expected for the next days and a more than probable second move would take BTC to the 2.618 extension located at 5100-5200 area.
Please note that many Fibos converge at this level, when this happens those levels are very likely to be tested.
We may be facing the end of this bearish market, just keep in mind these levels and trade safely!
Comment:
Everything going as expected. This sideways move is perfect to open shorts at 6600 and 6400. Be ready for a major dump in the coming days!
Trade closed: target reached:
Finally BTC reached the High Confluence Zone. No more drops expected at this point, time to buy!