Hi all,
In this analysis I want to talk about BTC and if we will see one more leg lower.
I use the 10 ema smoothed and 50 ma smoothed as my momentum indicators as well as using the trend based fib extension, from the low of 2018 to the correction in the parabolic rally in 2020-21. This extends future levels to work with.
Now with the trend based fib extension I have slightly modified it with minus fib levels to give me possible target zones and as I have found out most upper levels that get hit usually get triggered on a pullback, like a channel the top gets hit and so the opposite becomes a magnet for price pulling it towards the lower zones.
So as you can see the upper zones were hit not managing to close price above the 1 level about 67'271 letting us know price would like to find the lower ranges indicating to me we should see the lower zones becoming magnets but this is not guaranteed by any means.
We could see a potential rally in BTC up to the 50 moving average smoothed line as we have a big distance between price and the smoothed 50 line before continuing down to the lower zones. The chances of this playing out though are slim in my opinion but not ruling this out as it could come into play.
Like the Dotcom bubble most stocks fell by 90-95% or more with most going broke or bankrupt. This is also another indication that BTC could have one more leg lower to go.
As crypto is still a relatively new asset class we could see a massive rally come in the future but will people be willing to wait?
I have no idea but I myself am very bullish on the long term outlook for the crypto sector.
BTC seems to be connected to the legacy market and so will probably follow suet, if the DJI falls BTC is most likely to follow unless crypto brakes from the legacy markets we would assume that it will continue to follow in the same direction.
I hope you found this helpful and interesting.
Remember this is NOT financial advise if you seek financial aid please speak to a licenced professional.
In this analysis I want to talk about BTC and if we will see one more leg lower.
I use the 10 ema smoothed and 50 ma smoothed as my momentum indicators as well as using the trend based fib extension, from the low of 2018 to the correction in the parabolic rally in 2020-21. This extends future levels to work with.
Now with the trend based fib extension I have slightly modified it with minus fib levels to give me possible target zones and as I have found out most upper levels that get hit usually get triggered on a pullback, like a channel the top gets hit and so the opposite becomes a magnet for price pulling it towards the lower zones.
So as you can see the upper zones were hit not managing to close price above the 1 level about 67'271 letting us know price would like to find the lower ranges indicating to me we should see the lower zones becoming magnets but this is not guaranteed by any means.
We could see a potential rally in BTC up to the 50 moving average smoothed line as we have a big distance between price and the smoothed 50 line before continuing down to the lower zones. The chances of this playing out though are slim in my opinion but not ruling this out as it could come into play.
Like the Dotcom bubble most stocks fell by 90-95% or more with most going broke or bankrupt. This is also another indication that BTC could have one more leg lower to go.
As crypto is still a relatively new asset class we could see a massive rally come in the future but will people be willing to wait?
I have no idea but I myself am very bullish on the long term outlook for the crypto sector.
BTC seems to be connected to the legacy market and so will probably follow suet, if the DJI falls BTC is most likely to follow unless crypto brakes from the legacy markets we would assume that it will continue to follow in the same direction.
I hope you found this helpful and interesting.
Remember this is NOT financial advise if you seek financial aid please speak to a licenced professional.
