Hi everyone,
There is much uncertainty right now about the next moves for Bitcoin , and for the whole crypto space. I can guess the dilemma for most right now: Is this a retracement (a discount for buyers) or the beginning of a big sell off?
In any case, even if you are bullish , I would have in mind that parabolic moves can not go just vertical forever. Even the November-December 2017 moves had significant retracements. Therefore, have a look at this pitchfork in the daily chart , which has been pretty accurate. It looks much better in the 4 hours chart, where you can see significant contacts and rebounds in and between the pitchfork lines. The direction of this pitchfork is pretty bullish , something all holders would sign for right now. No matter, it has been violated north way by this crazy rally. So, in my opinion, price will go further down, to get back inside the pitchfork , which has been the delimited zone for the price for half a year. The 0.5 line is likely to be tested again, which might be around 6200 dollars and matches with a support level. This would be the buy zone for a bullish case.
If you think this sell off could be bigger, have in mind the medium line (around 5800 dollars) and lower lines, all the way down to 5k ish. Area highlighted in white. This would be a first buy zone for a bearish case.
Ah, if you wonder what happens if price breaks the pitchfork to the downside, that will deserve another analysis, a scary one!!
*Not financial advise. Just sharing my ideas :)
Feel free to give your feedback/opinion. Thanks for reading!
There is much uncertainty right now about the next moves for Bitcoin , and for the whole crypto space. I can guess the dilemma for most right now: Is this a retracement (a discount for buyers) or the beginning of a big sell off?
In any case, even if you are bullish , I would have in mind that parabolic moves can not go just vertical forever. Even the November-December 2017 moves had significant retracements. Therefore, have a look at this pitchfork in the daily chart , which has been pretty accurate. It looks much better in the 4 hours chart, where you can see significant contacts and rebounds in and between the pitchfork lines. The direction of this pitchfork is pretty bullish , something all holders would sign for right now. No matter, it has been violated north way by this crazy rally. So, in my opinion, price will go further down, to get back inside the pitchfork , which has been the delimited zone for the price for half a year. The 0.5 line is likely to be tested again, which might be around 6200 dollars and matches with a support level. This would be the buy zone for a bullish case.
If you think this sell off could be bigger, have in mind the medium line (around 5800 dollars) and lower lines, all the way down to 5k ish. Area highlighted in white. This would be a first buy zone for a bearish case.
Ah, if you wonder what happens if price breaks the pitchfork to the downside, that will deserve another analysis, a scary one!!
*Not financial advise. Just sharing my ideas :)
Feel free to give your feedback/opinion. Thanks for reading!