NeoButane

$BTC 1D - Fibonacci tools and Gann Fans to identify support

COINBASE:BTCUSD   Bitcoin / U.S. Dollar
I've noticed that the current downtrend of $BTC can be either two things: a downtrending channel or a falling wedge . I obviously prefer the latter, but I cannot chart a falling wedge that I like.

All the tools used are based on the Fibonacci Sequence, sans the Ganns fans. I usually use indicators such as overlaid indicators and RSI/OBV, but I felt like all these were unneeded since the drawing tools I will be using create their own supports.

Right now is yet another crucial time for $BTC. If we break the 38.20% line without any hammer candles, I am expecting a free fall to the 50% retracement , $5,600. I want to believe this is our true bottom. But if we look back to MtGox, it even retraced further under the 50% after a another Fibonacci time zone begun. Spooky!

Because our value exploded in 2017, the Fibonacci circle cannot provide support like it does for stocks; instead, we end up with extremely high volatility and a ~$5,600 bottom until we can breach the next Fibonacci circle line.


Explanation of the tools used. This may be skipped or critiqued.


  • Fibonacci circle: This was drawn from trough to peak (~$930 -> ~$1950); As you can see, the inner circles were used as supports and resistances; however, because the value jumped so quickly, we aren't afforded the luxury of circle support, only FIbonacci retacement levels. This means we can face many rejections back down to the previous support level , whether that be ~$8,500 or ~$5,600.

    Fibonacci Retracement: Throgh to peak, essential tool of traders. Predefines future supports and resistances; can be used to find bottoms or ATHs.

    Fibonacci Time Zone: 8 day interval between 0 and 1. I lined it up wth major market movement, with its starting point in a period of high voliatility,

    Fibonacci Circle: trough to peak/ till based on the fib sequence; each upcming line is resistance, while the lind before it support.

    Gann Fans I verified they were 45 degrees and didn't move the scale afterwards. 1x1 lines were not held, looks like the 1x2 on the top Gann will be new support. Looks good for going side ways at$ $8,000 for now

    Volume: A simple way to determine market action, sentiment, and trend.


Thoughts?
update please
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