Hello traders, Here’s another update on BTC:USD on a weekly time-frame. As you can tell, all the key levels from the last week’s analysis are holding pretty well. After full-filling the 78.6% FIB we reversed back below $9000, thus indicating that there’s not enough buying power at this point. We’ll be waiting for the weekly closure to further confirm our take profit targets, as of right now the downside targets of 6000 and 5500 are still in play. This setup can only be invalidated if we anticipate a closure above 9000-9500 level, as long as price fails to break above the 78.6% FIB and the descending trend-line $6000 should be underway
So, you assume that just because it gave a reaction at that FIB level, that we go to 6k? Based on what?
UnknownUnicorn3394555
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@Crypt0maniak, Based on technical analysis, on the weekly time-frame we are currently in a downtrend, we have the descending trend-line that BTC has been rejecting for quite sometime now which also correlates with the 9500 resistance level. From the historical standpoint we know that BTC reacts the most on the 9.5-10k resistance and the 6k support, as you can see on the chart theres another ascending trend-line that correlates with the 6k support that needs to be retested .. so with that being said thats not just a FIB rejection, its a level with multiple correlations that indicate further downside.
Fundamentally, I believe that the 2017 bull run was purely based on media speculations and fear, if we are going to witness another bull run in 2020 it has to be based on utilization and institutional capital which I don't see coming into this market unless the price is low enough for them to buy in... thus the 6000 level looks like a sweet spot for institutional buy orders to take place. I hope this helped!