I'll keep this short and sweet. Notice how we have bounced around the Big Red 2.618 magical fib circle ring over the past several days? That's an indication of future action taking place along that line. Being that we are still in a clear downward-moving channel, there's a really good chance we will bail off of this ring and drop down to the next line, at the Big Red 3.618. Also take note that the stochastic is clearly in the "overbought" territory, and looks like it is ready to head south again. But look for a possible dip to $7500. My guess is one week and we'll be there.
We could bounce on that 3.618 and head back up to the top of the parallel trading channel, but IF we make it back up that high I think BTC will hit its head hard and pivot after peaking at $8750 and continue the downward trend with the momentum of a roller coaster on the first big drop.
I would be careful listening to anyone talking "major breakout!" if we get that pump after the impending dip. Every five minutes, the jackasses on YouTube go from "BTC is going to dive!" to "BULL FLAG BREAKOUT!" within the same day. You just can't trust what you hear. In fact, don't even trust me. I'm not giving financial advice. I only call it like I see it, and report the alerts when we approach previously magical fib circle boundaries. Let's see how this one plays out!
Agreed! Will look for re entry at 7700 upon coming back to test this.
carltonzone
⋅
@DDZ777, This is ripe ground for swing traders. There is a possibility you could jump in and cash out when we reach the top of that parallel trading channel that has acted as HUGE resistance to this point. It's definitely not guaranteed to happen, but it is highly probable. After the final reversal, I'm looking for $5400.
VincePrince
⋅
Thanks for sharing
carltonzone
⋅
@VincePrince, I like this scenario you've outlined too. It is absolutely possible. Thank YOU for sharing too!
PokMilliAllgood
⋅
IMO you are so fishy
carltonzone
⋅
@PokMilliAllgood, Well I'm not sure what that means exactly, but thanks for the comment! Feel free to expound on your thoughts.
NMEcrypto
⋅
@carltonzone, great work and thank you for introducing me to fib circles. Can you explain how I can add it onto my chart?
carltonzone
⋅
@NMEcrypto, Absolutely! I base my fib circles on swing channels. Whenever a general micro trend changes from upward to downward, I take the high point to the low point, and look for confluences. Sometimes you have to test out different high points in order to find the most confluences, and when you do, you stick with that set. The more times you see pivot points or areas where the priceline seems to "stick" to a ring, that lets you know you've got one that can predict future pivot points. I'll shoot a video soon and explain it where you can clearly see it!