I thought this was interesting.
This is the BTC parabolic wave from the perspective of Fibonacci fans, which chart lines of support and resistance between lows and highs and vice versa.
I'm starting the fans on 11 December 2020, the beginning of the upside move that would lead to breaking the previous ATH, and setting the high on 62.
We can see a few things here:
1) Upside momentum is slowing. We clearly experience this in trading. The February correction took significantly longer than January. The whole wave is slowing.
2) It's interesting to see how the wave appears to broadly respect the Fibonacci fan levels, and how this latest correction broke below the 0 line, which will now act as resistance.
3) The chart does appear to suggest that mid-70s may be as far as we get, before there is a correction and break down potentially below the 0.25 level.
4) The EMAs spread is clearly narrowing with each leg upwards, which also explains the waning momentum, and puts a dampener on projections of a meteoric ascent from here beyond $100k.
5) The corrections are coming closer together. I think we should see the correction we've just experienced as separate from that of 21 February, even though the latter straddled into March.
6) From this chart, I could see BTC penetrating the 0 line in one last push, perhaps to 74. But I think that may be it. The blow-off top would come as we then pass back under the 0 line and are testing support lines, rather than resistance lines, down into the bear market.
Let me know your thoughts.
This is the BTC parabolic wave from the perspective of Fibonacci fans, which chart lines of support and resistance between lows and highs and vice versa.
I'm starting the fans on 11 December 2020, the beginning of the upside move that would lead to breaking the previous ATH, and setting the high on 62.
We can see a few things here:
1) Upside momentum is slowing. We clearly experience this in trading. The February correction took significantly longer than January. The whole wave is slowing.
2) It's interesting to see how the wave appears to broadly respect the Fibonacci fan levels, and how this latest correction broke below the 0 line, which will now act as resistance.
3) The chart does appear to suggest that mid-70s may be as far as we get, before there is a correction and break down potentially below the 0.25 level.
4) The EMAs spread is clearly narrowing with each leg upwards, which also explains the waning momentum, and puts a dampener on projections of a meteoric ascent from here beyond $100k.
5) The corrections are coming closer together. I think we should see the correction we've just experienced as separate from that of 21 February, even though the latter straddled into March.
6) From this chart, I could see BTC penetrating the 0 line in one last push, perhaps to 74. But I think that may be it. The blow-off top would come as we then pass back under the 0 line and are testing support lines, rather than resistance lines, down into the bear market.
Let me know your thoughts.
AgitationZone | TA-focused cryptocurrency Discord channel discord.gg/atGcaRzz
