I decided to do some in-depth analysis on Bitcoin
BTCUSD
(4H chart) and plot some possible future scenarios. First, we can see that price is currently moving up in an ascending parallel channel. Until this channel is still intact, the most likely move is up towards the upper boundary of the channel (21k - 23k). We could see a retest of 18k before moving higher. 20k will be an important psychological barrier as well.
However, if it breaks lower, we can pinpoint a few areas (I plotted six) where important support and resistance levels line up with multiple Fibonacci retracement levels. The most prominent ones are:
17100 - important support and resistance area + 0.236 and 0.382 Fibonacci levels.
16500 - important support and resistance area + 50% retracement from the ATH towards the latest major low at 12700.
15600 - a confluence of 0.618 retracement measured from 12700 and 0.382 from 8900 + old support and resistance.
14300 - a confluence of three Fibonacci retracements, including 0.382 from the low of 5400 back in mid-November.
12900 - old support + 0.618 retracement measured from 8900.
11000 - old highs + two Fibonacci levels, including 0.618 from the low of 5400 back in mid-November.
Whichever way it goes, it's good to be prepared! Happy trading!
BTCUSD
(4H chart) and plot some possible future scenarios. First, we can see that price is currently moving up in an ascending parallel channel. Until this channel is still intact, the most likely move is up towards the upper boundary of the channel (21k - 23k). We could see a retest of 18k before moving higher. 20k will be an important psychological barrier as well. However, if it breaks lower, we can pinpoint a few areas (I plotted six) where important support and resistance levels line up with multiple Fibonacci retracement levels. The most prominent ones are:
17100 - important support and resistance area + 0.236 and 0.382 Fibonacci levels.
16500 - important support and resistance area + 50% retracement from the ATH towards the latest major low at 12700.
15600 - a confluence of 0.618 retracement measured from 12700 and 0.382 from 8900 + old support and resistance.
14300 - a confluence of three Fibonacci retracements, including 0.382 from the low of 5400 back in mid-November.
12900 - old support + 0.618 retracement measured from 8900.
11000 - old highs + two Fibonacci levels, including 0.618 from the low of 5400 back in mid-November.
Whichever way it goes, it's good to be prepared! Happy trading!