jacobcanfield

Will Bitcoin's 61.8% Fibonacci Fractal Come True Again?

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
Happy Friday Traders!

Today, we explore how Bitcoin has a strange love for Fibonacci and it's strong affinity for the 61.8% retracement level.

If this fractal 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 61.8% retracement fractal dating back to 2013.

MY PREVIOUS Bitcoin Analysis:
Bitcoin Analysis and It's Love For Fibonacci


It's easy to see the 61.8% retracement 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 support and resistance on some of the biggest moves as price flipped back and forth around it.



In the past, the 61.8% retracement 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 61.8% retracement level play a pivotal role in all of the crashes on the way up during Bitcoin's monumental uptrend.


And More...


Even in the decline from $20,000 where I wrote extensively about the 61.8% retracement level... the 61.8% retracement was very apparent on almost every pull back from the $6,000 support level .


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 61.8% retracement 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 daily chart 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 bearish pending a CME futures gap being filled and a drop back down to fill other gaps and potentially a double bottom or at least to test the support of the lower end of the ascending triangle , especially with the low volume , but this fractal has me second guessing.

I also discovered a CME futures gap on hte hourly chart right at the . 618 Retracement 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 CME gap and the $5380 level on the FUTURES 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 resistance level 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?

If you like my work, you can support me with a follow and a like!

Happy Friday and Happy Trading!
Comment: We are currently at Resistance and seeing stop runs on lower time frames.

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.
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Related Ideas

jacobcanfield, thank you for such an insightful analysis.

Friends, please take a look at my analysis as well!
I’ve reached a very similar conclusion about the price forecast for Bitcoin, but via different chart patterns & indicators.
You’ll certainly find it useful! Leave your feedback!

+1 Reply
In the short term, Bitcoin is making a corrective wave down.
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Watch and subscribe guys!

Thx!
+1 Reply
Like the IN DEPTH work you put into your analysis. I prefer data to back up what I may be seeing in the charts and using other ancillary data that most traders overlook or may not know about yet. So its nice to see more data like this coming up .
Reply
Great analysis
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61.8 is good to keep an eye out but also we need to be ready for possibiity of it testing 6k...
Reply
This would be a sweet move up! We're currently long and are able to update our stop loss every 4 hours to lock in profits for this trade. Let's see if it holds. Thanks for the great TA Jacob!
Reply
BTCUSD Monthly Structure
+2 Reply
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