Having these charts available to us is an amazing tool that can help us predict the future.
We can make better trading decisions if we learn to decipher the data/codes coming from these charts.
What is the daily Bitcoin chart saying? What does Bitcoin has in store in the coming weeks for us?
Please, allow me to entertain you for a few minutes... Allow your time for me to read this chart for you!
Consolidation vs Distribution
How do we know that Bitcoin is in a consolidation phase rather than a distribution phase?
The recent break above EMA100 is very telling but we can surely go deeper.
Distribution happens when a support level is challenged continually before it breaks.
We have a low set 18-June for BTCUSD that was never tested again.
From 18-June to this day we have 140 and days, almost 5 months and this support level stays safe.
Since the support wasn't tested, not even once... We can say that Bitcoin is not in a distribution phase but instead consolidation before the next price jump.
From 18-June to 15-August we have the initial corrective wave; This is followed by a strong higher low that includes the highest volume in multiple years on a single day, 26-September...
With a higher-low and the 18-June support intact, resistance being challenged and conquered in the form of EMAs, we are setup for a higher high on the next wave.
Here is how we find the next potential target using the Fibonacci Extension Tool step by step - CHART:
1- Get the Trend-Based Fib Extension tool. 2- Set the first value as the 18-June low (1). 3- The second value should be the 15-August peak (2). 4- The last/third value the 13-October low (3).
This will give you the Fibonacci Extension numbers which we use as potential targets.
The levels of interest for us are the Golden Ratio which sit at 0.618 and 1.618.
Based on this tool, we can see $22,773 as the first target followed by $30,236 as the next high.
If we want to be more conservative and/or use a different approach; We have $24,000 as MA200 and $28,142 as EMA300.
With these two different tools/methods we can extract a price range for the next Bitcoin target.
That is between (1)$23,000 - $24,000 followed by (2)$28,150 to $30,200.
... I forgot the rest I was about to tell you because I got entertained doing the Fib. extension explanation/drawing... But it had something to do with the fact that ~5 months is a long time when it comes to Bitcoin and the cryptocurrency market.
It is also a decent amount of time for range trading before we see the market shake things up.
We have many more signals to share but I am guessing that this much is more than enough.
wow... nice charting knowledge.. i tried the same in binance btc chart gives different fib points,,, Thanks a lot please share more knowledge
AlanSantana
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@meutsavgupta, Will do... It is my pleasure to share.
I am glad you find it useful.
Namaste.
Ma3365
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@AlanSantana, made a new low today so do we change the fib indicator levels?
nu0700
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Happy to see you back on TV sharing your knowledge. I have especially enjoyed your readings on spirituality and personal growth on telegram. Thank you.
AlanSantana
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@nu0700, Thanks a lot for sharing my friend and for the support. It is truly appreciated.
Good description of the idea and technical analysis of the chart! Checked the cluster analysis and do not doubt the idea) Already waiting for the exact workout.
TrmpFan
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great TA sifu
i think we're going to around 32k, because that was a strong support level before btc had its big break down to 17,6k and then started torture trading (sideways trading) for months 32k is the next major resistance level that will be tested a several times before btc breaks above it later on (when? ooo hell I dont know)