In our attempt to find the potential Support level on Bitcoin, following today's sharp decline we resort to a simple comparison of the previous cycle with today's price action.
There is no need to over-complicate things on this one. In 2016 after Bitcoin completed a +300% rise from the pre parabola bottom and the Golden Cross on 1D (note that we used the 1W chart in order to display both cycles on 1 chart, so try the MA50 and MA200 on the 1D chart to see the Golden Cross formation) and pulled back to find support on the 0.3 Fibonacci retracement level. The 1W MA50 was also close.
This time after the +300% move was completed the pull back that was greatly felt especially today just hit the 0.3 Fibonacci level (around 8,100) but the 1W MA50 remains quite far apart still at 6,800. Which Support level of the two will be the winner is unknown. But it will be a reasonable strategy, since we are on a Bull Cycle, to buy both now and at 6,800 in anticipation of the next Higher High on the 1W chart which will probably be near the 19,900 All Time High.
Note that the monthly chart remains bullish (RSI = 57.083, MACD = 1428.600, Highs/Lows = 536.0504, ADX = 33.975) setting the tone for which the dominant trend still is.
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There is no need to over-complicate things on this one. In 2016 after Bitcoin completed a +300% rise from the pre parabola bottom and the Golden Cross on 1D (note that we used the 1W chart in order to display both cycles on 1 chart, so try the MA50 and MA200 on the 1D chart to see the Golden Cross formation) and pulled back to find support on the 0.3 Fibonacci retracement level. The 1W MA50 was also close.
This time after the +300% move was completed the pull back that was greatly felt especially today just hit the 0.3 Fibonacci level (around 8,100) but the 1W MA50 remains quite far apart still at 6,800. Which Support level of the two will be the winner is unknown. But it will be a reasonable strategy, since we are on a Bull Cycle, to buy both now and at 6,800 in anticipation of the next Higher High on the 1W chart which will probably be near the 19,900 All Time High.
Note that the monthly chart remains bullish (RSI = 57.083, MACD = 1428.600, Highs/Lows = 536.0504, ADX = 33.975) setting the tone for which the dominant trend still is.
** If you like our free content follow our profile (www.tradingview.com/u/InvestingScope) to get more daily ideas. **
Comments and likes are greatly appreciated.
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Over 65% accuracy on Private Signals Channel.
Over 15% return monthly on our Account Management Plan.
Account RECOVERY services.
Free Channel: t.me/investingscopeofficial