As we have seen in the bear-market of 2018 Bitcoin price action respects the fibonacci levels, a pattern we see played out many times. This pattern is showing itself again and our theory is that it will play out and we can use it. The market is indecisive at the moment with a lot of people believing that the price of bitcoin will continue to go up and reach the new ATH (All Time High). But if we take a moment to analyse the past, we can expect a pull back that returns us to the old support. Sentiment on the short term is that the bear market is over, however until we go above $21,000 this simply is not the case.
To understand the price action we must first look at the big picture.
This first chart represents exactly what we see with Bitcoin on the weekly in the second chart we look at the daily for end of 2018. The price goes down and bounces up to reach the Fibonacci level of 0.618, which acts as a form of resistance which pushes Bitcoin price back down returning to either the previous level or lower before bouncing back to reach the fib 0.382 level. After reaching the fib 0.382 level price moves up and down between the fib levels or below before a big move downwards which culminates at the end of the triangle.
As we can see these areas are respected by the price action, acting as support and resistance levels. This same pattern bounce back to reach the fib 0.618 before returning to the bottom before another run to the fib 0.382.
We see this pattern another time during the bear market.
This leads us to belive that a similar pattern will happen again pushing price back down to these levels.