if you remember what happened in 2018 you will be get more insight what is happening now. let me explain what i mean:
in 2018 before bitcoin dump to 3100 we had a pattern that was repeating it self over and over. it was retracement to 61.8% fib level.
in may 6th 2018 bitcoin topped out at 9900$ at 61.8% of previous downfall.
in july 25th 2018 bitcoin topped out at the 61.8% fib level.
in september 4th bitcoin topped out at 7400$ at fib 61.8% level.
but after these tops bitcoin didn't reach 61.8 percent and took out previous lows. (as i'm showing you on the chart)
i refer to this as a structure and it can be in any form. markets are not a formula to give you exact output. all we can do is to see what is the thing that market is trying to say. i think markets make a structure at any time and this structure may break at some point it is the basis of breakout system trading but digging into it precisely and knowing the structure will make better results than chart patterns that everyone knows. at that time it was a structure and market did its break we should have listened to it.
follow updates to reachout to todays market structure
in 2018 before bitcoin dump to 3100 we had a pattern that was repeating it self over and over. it was retracement to 61.8% fib level.
in may 6th 2018 bitcoin topped out at 9900$ at 61.8% of previous downfall.
in july 25th 2018 bitcoin topped out at the 61.8% fib level.
in september 4th bitcoin topped out at 7400$ at fib 61.8% level.
but after these tops bitcoin didn't reach 61.8 percent and took out previous lows. (as i'm showing you on the chart)
i refer to this as a structure and it can be in any form. markets are not a formula to give you exact output. all we can do is to see what is the thing that market is trying to say. i think markets make a structure at any time and this structure may break at some point it is the basis of breakout system trading but digging into it precisely and knowing the structure will make better results than chart patterns that everyone knows. at that time it was a structure and market did its break we should have listened to it.
follow updates to reachout to todays market structure
Comment:
volume should break this level:
38752 bitcoin per day.
38752 bitcoin per day.
so we have a clear structure here:
come down make a low then retrace to 61.8 then take out previous low.
this is the rule. when it breaks: take action.
we are almost above 61.8% but it is not considered as a breakout because of volume i need to see volume to surpass october 26 2019 high to believe that market broke it's structure to the upside.
but right now selling is more logical than buying i would rather buy at higher level with more confidence than to but at exact 61.8% level after price appreciation.