The price of bitcoin is back at the 6-year support level on Schiff Pitchfork again (for now it is 8000 USD +-12% for volatility). This has been the major support level for the past 6 years. It is also at the 20EMA weekly level (red line) and Gann fan (not shown). Having three major support levels at the same time means they all act together making this support level extremely important.
Although the price action does appear to be very scary at the moment but if you want to buy low and sell high then this is a good opportunity to go long with good profit:loss ratio (bear in mind not to set your stop loss too tight due to high chance for a volatile move to the downside).
A true break below this support level would signal a major downside to come for the next months or even quarters as this would suggest that we are in wave C of this major correction (yes, the correction that started in 2017). If so, then it is possible we can get back to 6000 and 3500 USD or even below that. Also bear in mind that bitcoin price has had 3 major bulls run since invented which correspondence to 1-5 impulse waves in Elliott wave theory and it is definitely possible that the most major correction in this 'semi-grand' cycle is due for (see
). Sorry to say but we could also be into a very long crypto winter (5-10 years is possible as happened previously with gold back in 1980-2000). I hope this does not happen but do be prepared for both bullish and bearish scenarios.
However, as with any technical analysis, it is best to be patience and let the price tells you what to do. In this case, it is to remain on a buy side so as long as the support level hold the price.
Good luck and let's hope the bearish scenario does not play out!
Although the price action does appear to be very scary at the moment but if you want to buy low and sell high then this is a good opportunity to go long with good profit:loss ratio (bear in mind not to set your stop loss too tight due to high chance for a volatile move to the downside).
A true break below this support level would signal a major downside to come for the next months or even quarters as this would suggest that we are in wave C of this major correction (yes, the correction that started in 2017). If so, then it is possible we can get back to 6000 and 3500 USD or even below that. Also bear in mind that bitcoin price has had 3 major bulls run since invented which correspondence to 1-5 impulse waves in Elliott wave theory and it is definitely possible that the most major correction in this 'semi-grand' cycle is due for (see
However, as with any technical analysis, it is best to be patience and let the price tells you what to do. In this case, it is to remain on a buy side so as long as the support level hold the price.
Good luck and let's hope the bearish scenario does not play out!