Currently, BTC is selling which looks like the 8th, corrective, wave. If the current level of the sell-off holds (at the level of around 11000$) until an uptrend begins at any time in the future, then this may be considered a flat 3-3-5 correction. In such a case, I expect BTC to reach as low as 23000$ and as high as 33000$ whenever the next uptrend begins.
However, the charts indicate a higher possibility that selling will continue into 10000$ and possibly below. The Ichimoku cloud just recently turned negative, and PPO suggests that the short-term EMA just went under the long-term EMA and the overall momentum has been accelerating in favor of the sellers. RSI is hovering in the lower middle section, leaving plenty of room for further selling pressure. If the selling continues, I estimate the following possible levels to pick up BTC: 8000$, 5500$ and 2500$. The reasoning is based on the AB=CD extension drawn from the high of December 17 to the low of December 22 and the subsequent high of January 6. The higher buy target is based on the perfect ratio between leg AB and leg CD, and the lower two targets are based on the extended estimation of CD. The lower 2 targets are highly unlikely without some extremely negative news. The first target, however, has been discussed by many long-term BTC holders and traders on social media as a likely low of 2018 for over a month now. While I am personally not a fan of selling when everything is selling, this may be a risky, but profitable opportunity to sell higher than the possible buy targets.
Whichever of the above mentioned buy targets play out, the sell targets will change from the stated in the first paragraph.
Thanks for reading. If you find any kind of weakness in my analysis, please feel free to point it out to me. Also consider checking my Steemit page for more in-depth analysis of charts and possible good investment opportunities. Here is my analysis of BitCoin from 2 days ago published on Steemit with more explanations of my reasoning that still stands true.
However, the charts indicate a higher possibility that selling will continue into 10000$ and possibly below. The Ichimoku cloud just recently turned negative, and PPO suggests that the short-term EMA just went under the long-term EMA and the overall momentum has been accelerating in favor of the sellers. RSI is hovering in the lower middle section, leaving plenty of room for further selling pressure. If the selling continues, I estimate the following possible levels to pick up BTC: 8000$, 5500$ and 2500$. The reasoning is based on the AB=CD extension drawn from the high of December 17 to the low of December 22 and the subsequent high of January 6. The higher buy target is based on the perfect ratio between leg AB and leg CD, and the lower two targets are based on the extended estimation of CD. The lower 2 targets are highly unlikely without some extremely negative news. The first target, however, has been discussed by many long-term BTC holders and traders on social media as a likely low of 2018 for over a month now. While I am personally not a fan of selling when everything is selling, this may be a risky, but profitable opportunity to sell higher than the possible buy targets.
Whichever of the above mentioned buy targets play out, the sell targets will change from the stated in the first paragraph.
Thanks for reading. If you find any kind of weakness in my analysis, please feel free to point it out to me. Also consider checking my Steemit page for more in-depth analysis of charts and possible good investment opportunities. Here is my analysis of BitCoin from 2 days ago published on Steemit with more explanations of my reasoning that still stands true.
steemit.com/btc/@hum...tc-and-a-bit-on-alts
(link)