cryptoonchain

Fibonacci and momentum analysis

BITSTAMP:BTCUSD   Bitcoin
The chart above shows the Fibonacci and momentum analysis in the Bitcoin historical chart.
As can be seen, the market bottom in the RSI and the wave_trend are determined by the entry of these oscillators into the oversold zone.
In cycles 1 and 2, it is observed that bitcoin is squeezed above the 0.382 Fibonacci ratio after reaching ATH, and creating a descending triangle pattern. After the triangle pattern breakdown, BTC has dropped to 0.146 Fibonacci.
In the third cycle, the price is squeezing above 0.5 Fibonacci. Therefore, in case of breakdown, we may see less drop than cycles 1 and 2. therefore a drop to 0.236 or 0.382 Fibonacci may occur (Based on the trend based Fib Extention, 0.236 seems more likely)

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