Sooner or later, 0.382 fib support collapses and a retest of pennant support, 0.236 fib $7,000 range will occur
First, let's examine the Fibonacci levels on the weekly chart drawn from Dec 2017 high to Jan 2018 low. You will see a strong correlation of these levels coinciding with the close price of weekly candles.
0.786 capped prices Jan 2019 as price attempted to rebound from initial selloff.
0.618 acted as support for four weeks during the initial selloff phase (Dec 2017 / Jan 2018) and was the level in which price was rejected (June 2019) during the bullish move up.
0.5 after being broken has become a strong support role reversal level (support turned resistance). It's important to point out that not a single weekly candle has been able to close above this level since the initial bull run Dec 2017.
0.382 so far is holding up as support over the last three months, creating a consolidation range between the 0.382 and 0.5 Fibonacci levels.
0.236 is a little well less defined. It looks to have acted as the POC (point of control), which bulls and bears fought over sort of like a line in the sand. Eventually, bears took control of this level (evident by the weeks leading up to the pre-breakout squeeze) which ended with a breakdown of the blue dashed trend-line support.
__________________________________________________________________________________________________________
Secondly, let's examine the volume. I've drawn arrows representing the overall trend in volume. Increasing volume associated with an increase in price leading up to Dec 2017 highs. Followed by a year of steadily decreasing volume as price broke down.
From the price lows Jan 2019, we begin to see volume start to increase once again. Volume peaked, along with price June 24 2019 and has been steadily declining ever since.
One anomaly, is the spike in volume Nov 2018, which marked the capitulation of bulls after long term support was broken (FUD, race to the exit, FOMO selling). Then volume quickly dropped off back towards the lows.
Being a skeptic myself, the fact that the creation of Tether and Tether printing has been associated with periods where volume has increased makes me biased to the idea that bullish price moves in BTC are synthetic and a creation of the exchanges themselves.
__________________________________________________________________________________________________________
My analysis: Bitcoin bulls are going to need volume to pick up if they are going to see a sustained price break to the upside. That requires new money to flow in, a renewed interest sufficient to attract outside fresh capital.....
First, let's examine the Fibonacci levels on the weekly chart drawn from Dec 2017 high to Jan 2018 low. You will see a strong correlation of these levels coinciding with the close price of weekly candles.
0.786 capped prices Jan 2019 as price attempted to rebound from initial selloff.
0.618 acted as support for four weeks during the initial selloff phase (Dec 2017 / Jan 2018) and was the level in which price was rejected (June 2019) during the bullish move up.
0.5 after being broken has become a strong support role reversal level (support turned resistance). It's important to point out that not a single weekly candle has been able to close above this level since the initial bull run Dec 2017.
0.382 so far is holding up as support over the last three months, creating a consolidation range between the 0.382 and 0.5 Fibonacci levels.
0.236 is a little well less defined. It looks to have acted as the POC (point of control), which bulls and bears fought over sort of like a line in the sand. Eventually, bears took control of this level (evident by the weeks leading up to the pre-breakout squeeze) which ended with a breakdown of the blue dashed trend-line support.
__________________________________________________________________________________________________________
Secondly, let's examine the volume. I've drawn arrows representing the overall trend in volume. Increasing volume associated with an increase in price leading up to Dec 2017 highs. Followed by a year of steadily decreasing volume as price broke down.
From the price lows Jan 2019, we begin to see volume start to increase once again. Volume peaked, along with price June 24 2019 and has been steadily declining ever since.
One anomaly, is the spike in volume Nov 2018, which marked the capitulation of bulls after long term support was broken (FUD, race to the exit, FOMO selling). Then volume quickly dropped off back towards the lows.
Being a skeptic myself, the fact that the creation of Tether and Tether printing has been associated with periods where volume has increased makes me biased to the idea that bullish price moves in BTC are synthetic and a creation of the exchanges themselves.
__________________________________________________________________________________________________________
My analysis: Bitcoin bulls are going to need volume to pick up if they are going to see a sustained price break to the upside. That requires new money to flow in, a renewed interest sufficient to attract outside fresh capital.....