BITCOIN This rally may be extended to $17000 before a pull back.

Do you remember the May Channel Up that has long helped us calculate the optimal buy/ sell entries (see below)?



Well it just broke to the upside today. Even the March (underlying trend-line) has reached and surpassed with ease the $14300 Target:



Even though most people (and rightly so) may think that Bitcoin is overbought on all time-frames, it might not be time to sell, as there are certain indicators showing that the current rally isn't over yet.

On this study I use extensively the Fibonacci retracement levels from the ATH to the December 2018 Bottom of the market, as well as applying them to the wider Channel Up following that Bottom.


** The only Fibonacci level left to fill before $20000 **
As you see on the chart, every Fibonacci retracement level (0.382, 0.618, 0.786) has played its role since the December 2018 All Time High (ATH). For your own convenience I have labelled those in different colors. The last Fibonacci level that was filled was the 0.785 last week. The only one unfilled since the December 2017 ATH is the 0.918 Fib which made contact on the January 01, 2018 1W candle. That is currently at $17000. You easily understand that buyers could attempt to contact this then book profits and move on for 20K (ATH) even by the end of this year.


** The Channel Up Fibonacci levels **
How low can that "profit taking pull-back" go? Well that brings us back to the Channel Up. As you see on the chart, since April, every Fib has worked perfectly as a Support. First the 0.382 (April 20) then the 0.5 (May 04 and 11), then 0.618 (August 31 to September 21). The only one left is the 0.786, which is currently around $13000 and has supported both last week's and the current 1W candle. Naturally this is the level to watch.


** The 1W RSI Double Top **
At the bottom of the chart, I have displayed the RSI (on the 1W time-frame of course). As you see the Lower Highs trend-line since the 2017 Top, broke last week and the indicator is going after the 80.00 Resistance. That Resistance was made from a Double Top in May -July 2019. In fact the previous two major Highs for BTC (June 2019 and December 2017) have been materialized after the RSI made a Double Top. So an additional indicator that can help us spot the level to book profits on this rally, can be observing the 1W RSI for a Double Top. Note that it may be on its own Channel Up Higher High.


So what do you think? Is $17000 next for BTCUSD? Feel free to share your work and let me know in the comments section!

Please like, subscribe and share your ideas and charts with the community!

--------------------------------------------------------------------------------------------------------

!! Donations via TradingView coins also help me a great deal at posting more free trading content and signals here !!

🎉 👍 Shout-out to TradingShot's 💰 top TradingView Coin donor 💰 this week ==> didogetsov

--------------------------------------------------------------------------------------------------------


BONUS MATERIAL: