The Magic 4.236 Line Will Tell The Story of BTC's Next Move!
Okay folks! We are nearing the bottom ledge of the 20% "oversold" stochastic territory, and this means we might be on the brink of a reversal and the next significant move of BTC. Once we pass that 20% boundary and bottom out, the reversal will tell the story of what happens next. Here's why...
Note that I had mentioned in my previous idea that there could be a double top after the recent pump, similar to what we saw right after the October 25th pump. The pump on the 25th wicked right up to the top of the parallel trading channel, and was immediately rejected. On October 27th, it pumped again, but formed a lower high. It took a long decline for the next month, bottoming out at around $6700 on November 25th.
Fast forward to now, and we see some similarity. We have already experienced the first pump that also got rejected at the top of the trading channel before reversing trend. But the next pump, if it happens, will tell the story of where we go from there. The move up started right on the magical Light Blue 3.618 fib circle ring. We got rejected at the top of the channel, and the 4.236 is the next ring of this fib circle set that we already know is "hot".
Will we move up before we get to the 4.236? If we do, the action at the top of the trading channel will shed the light on what will happen after that. IF we reverse in the next day or two, and start floating up again, my attention will be on the intersection of the top of the parallel trading channel and the 4.236. IF BTC gets rejected at that point, I see a continuance and confirmation of the bearish trend, and a move to lower levels.
If you're looking at the worst case scenario, a rejection and confirmation of the trend could land Bitcoin as low as $5400. On the other hand, breaking the top of the trading channel could be the indication that the bearish trend is over, and mark the beginning of an accumulation phase as we gear up for the next bull market. In all probability, I'm thinking it will be the former, not the latter. But if we flatten out the bottom of the parallel trading channel to form a tightening falling wedge, which certainly could be possible, it points directly to $5400.
Take all of this with a grain of salt, because as we know from history, Bitcoin is VERY unpredictable. We are in such an early stage of the market that anything is possible. With no real use case other than playing the part of "storage of value", there's nothing to truly justify the price other than the pressure from pure speculation. Keep in mind, we were supposed to be at $1,000,000 by now, according to a certain American refugee who made a ridiculous bet about removing and consuming an appendage if the price of Bitcoin did not hit 7 figures by the end of 2019. Or was it 2020? Whichever the case, it's clear that he was wrong. And this is proof that NOBODY KNOWS FOR SURE where we could end up at this early stage in the game.
Not financial advice, just calling the plays as the game unfolds!
Carlton Flowers
The CryptoPro
Note that I had mentioned in my previous idea that there could be a double top after the recent pump, similar to what we saw right after the October 25th pump. The pump on the 25th wicked right up to the top of the parallel trading channel, and was immediately rejected. On October 27th, it pumped again, but formed a lower high. It took a long decline for the next month, bottoming out at around $6700 on November 25th.
Fast forward to now, and we see some similarity. We have already experienced the first pump that also got rejected at the top of the trading channel before reversing trend. But the next pump, if it happens, will tell the story of where we go from there. The move up started right on the magical Light Blue 3.618 fib circle ring. We got rejected at the top of the channel, and the 4.236 is the next ring of this fib circle set that we already know is "hot".
Will we move up before we get to the 4.236? If we do, the action at the top of the trading channel will shed the light on what will happen after that. IF we reverse in the next day or two, and start floating up again, my attention will be on the intersection of the top of the parallel trading channel and the 4.236. IF BTC gets rejected at that point, I see a continuance and confirmation of the bearish trend, and a move to lower levels.
If you're looking at the worst case scenario, a rejection and confirmation of the trend could land Bitcoin as low as $5400. On the other hand, breaking the top of the trading channel could be the indication that the bearish trend is over, and mark the beginning of an accumulation phase as we gear up for the next bull market. In all probability, I'm thinking it will be the former, not the latter. But if we flatten out the bottom of the parallel trading channel to form a tightening falling wedge, which certainly could be possible, it points directly to $5400.
Take all of this with a grain of salt, because as we know from history, Bitcoin is VERY unpredictable. We are in such an early stage of the market that anything is possible. With no real use case other than playing the part of "storage of value", there's nothing to truly justify the price other than the pressure from pure speculation. Keep in mind, we were supposed to be at $1,000,000 by now, according to a certain American refugee who made a ridiculous bet about removing and consuming an appendage if the price of Bitcoin did not hit 7 figures by the end of 2019. Or was it 2020? Whichever the case, it's clear that he was wrong. And this is proof that NOBODY KNOWS FOR SURE where we could end up at this early stage in the game.
Not financial advice, just calling the plays as the game unfolds!
Carlton Flowers
The CryptoPro