This is not a financial advice and I put it here only for my own record.
Following my previous post (), I have multiple Fib circles and one Pitchfork. The market at this moment perfectly respects the blue and red Fib circles. I see clearly that the market is making an HS pattern.
The red Fib circles has played resistance/support recently. Whenever we got close to one of the red circles, we saw a strong resistance or support. Even if we go up, I do not think we go above $8660. I see one blue Fib circle, another red fib circle and a significant support level by Pitchfork channel. Also, note that the Bitcoin long-to-short ratio is high enough now to see a move to the downside in price (at least, it is unlikely yo see a massive upside move).
I think we will follow down the red circle (shown by a red arrow) and the blue circle below plays a support level. Then, we move sideways (with some ups and downs) to finally reach the gray large circle. As shown in my previous post (), every time we approached this Fib circle we had a massive drop. I am not saying we will have a massive drop but it is very important to be cautious around that moment. On the other hand that green line should be a very strong support. In history, it was a strong support and resistance for several times (even in 2016 and 2017, as well as recent 6 months). Can the market hold that level this time? We do not know (and no one else does either). My guess is we probably hold that level for a couple of weeks and eventually we break it.
BTW, I drew a Fib circle for RSI curve too that has played out very well so far. We will move about the middle of current channel, then we have a upside move to the upper channel and finally goes back down to have a large sell-off. Who knows?!
In my next post, I will show you why I think the market is currently overvalued and we eventually go down to at least retest the $3200.