Today, we explore how Bitcoin has a strange love for Fibonacci and it's strong affinity for the level.
If this holds up with this most recent downtrend, we could see a pull back to the $5100-$5300 level before deciding on it's next move..
I wrote about Bitcoin's love for Fibonacci before and the 61.8% trend before on two different analysis, but this will be looking at an interesting dating back to 2013.
MY PREVIOUS Bitcoin Analysis:
Bitcoin Analysis and It's Love For Fibonacci
It's easy to see the level of the total move from the previous low of the last bear market was a very important level for Bitcoin in 2018.
It acted as a on some of the biggest moves as price flipped back and forth around it.
In the past, the level held true as well.
In 2013, we saw many different examples of Bitcoin's pull back to the 61.8% in both the uptrends and the downtrends with exact precision.
After we bottomed out and came out of the former bear market, we saw the level play a pivotal role in all of the crashes on the way up during Bitcoin's monumental uptrend.
Even in the decline from $20,000 where I wrote extensively about the level... the was very apparent on almost every pull back from the $6,000 .
That brings us to the here and now...
Looking at the decline from the break at $6400 to the potential swing low bottom at $3200, that gives us a potential to the holds true, that would give us a long opportunity to the $5200-$5300 zone:
We are also seeing that the 314 MA on the is also heading towards that level as well to get double confluence. (314 MA is a long term moving average that is used by some trading professionals.)
I was initially mid term pending a gap being filled and a drop back down to fill other gaps and potentially a or at least to test the support of the lower end of the , especially with the low , but this has me second guessing.
I also discovered a gap on hte hourly chart right at the . Zone here:
The intresting part about that is you have to use the wick before the big move down to get them EXACTLY at the same level. That wick, if you recall went right into the .618 zone from the TOTAL move.
The $5380 level may be the most important level to watch as a key resistance before a fall back down.
Using the gap and the $5380 level on the chart, we can do a 'future forecast with the swing low and the swing high for a potential pull back zone and it lines up PERFECTLY with the current at $3986 for a pull back.
This is obviously long term forecasting and this is dependent on a breakout above $4291 and remember, NOTHING goes up in a straight line and this is all based on probability and mathematics and it's important to do your own due diligence on your own charts and to confirm with other indicators, price action and your own trading strategy.
What do you guys think? Are we heading back up to the 61.8% level... or was it all JUST coincidence and we're in for more downside momentum?
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Happy Friday and Happy Trading!
Sometimes it’s best to zoom out
As always, manage your risk and maintain a stop loss where the market invalidates your trade thesis.
If the triangle breaks down, this thesis is invalidated.