It's no secret that the alarm bells are ringing for bitcoin but what can we expect in the not so distant future?
Using pitchfan we can see a clear pattern of tops and bottoms being formed on the blue line (1 and -1). What is interesting is the "no fly zone" that has been established between the Fibonacci numbers of 0.382 and -0.382 marked in green. Price action does not stay long in this zone is is quickly pushed to the next Fibonacci level of 0.618 and -0.618 marked in teal. Currently we are sitting on the median line (red). History shows us two things: Firstly the median line provides both very strong resistance and very strong support. Secondly, every time BTC tests on this line it eventually crosses it. It hurts me to say but the likelihood of BTC bouncing back up into a bull trend is very slim (well for now anyway). If history repeats itself, which it normally does we can expect BTC to break under the median and consolidate around the -0.618 zone (aprox $43k) before dumping down to the blue line on -1 (aprox $30k).
This behaviour happens to provide confluence with the Wyckoff distribution schematic #1 which also suggests BTC is on its way to the $30k mark. While it maybe hard to believe the probability of this scenario gets greater day by day.
Using pitchfan we can see a clear pattern of tops and bottoms being formed on the blue line (1 and -1). What is interesting is the "no fly zone" that has been established between the Fibonacci numbers of 0.382 and -0.382 marked in green. Price action does not stay long in this zone is is quickly pushed to the next Fibonacci level of 0.618 and -0.618 marked in teal. Currently we are sitting on the median line (red). History shows us two things: Firstly the median line provides both very strong resistance and very strong support. Secondly, every time BTC tests on this line it eventually crosses it. It hurts me to say but the likelihood of BTC bouncing back up into a bull trend is very slim (well for now anyway). If history repeats itself, which it normally does we can expect BTC to break under the median and consolidate around the -0.618 zone (aprox $43k) before dumping down to the blue line on -1 (aprox $30k).
Comment:
Bitcoin finally busted through the zero line and bounced off the blue (-1) line. Whether it retests is still uncertain but very possible.