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BITCOIN parabola: Daily-Weekly! What does this look like to you?

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
Much is being discussed over Bitcoin's recent hyper aggressive rise. It is beyond any reasonable doubt that it is a strong confirmation that the new Bull Market has started. Backed by strong fundamentals, this time can be different, more aggressive and unpredictable.

It is interesting however to keep in mind how such parabolic movements typically end up. For today's educational idea I have put side by side BTC's current (2019) mini parabola on 1D ( daily chart ) with the parabolic rise of the previous bull cycle (2015 - 2017) on 1W (weekly chart).

The comparison between the Daily and Weekly parabolic activity is only intended to magnify the results of a potential break of the pattern. Not to offer trading levels. Just to show how emotional trading works and how those emotions should be kept aside.

Before latecomers to the crypto party (i.e. people who bought above 6500) call me atheist (I advised to buy early while in the 3000 region), I need to make clear that this piece of work is a simple comparison of BTC's parabolic behavior. This is one of the most common patterns throughout Bitcoin's history, most specifically during its bull cycles.

To better understand the dynamics of this movement it may be useful to see how parabolas have worked during a Bull Cycle and in particular the last one (2015 - 2017):



We clearly see that when Bitcoin broke a parabolic rise most of the times it hit the 0.618 Fibonacci retracement level. Twice it hit (or almost) the 0.786 level while once the 0.5 level. It is apparent how Bitcoin behaves in parabolas but of course each time can be different in its own way. Especially when heavy fundamentals (i.e. wider acceptance etc) are involved as the current period we trade on.

But your opinion is what matters most. Let me know if the current price action on BTCUSD reminds you of such a parabolic pattern. And if so what are your projections! Hit the comments section!



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I think we've topped.
What fibo are we right now?
Reply
- No FOMO any more
- Facing with supply zone
- AD break down trendline
- Bearish Engulfing pattern
- All good news has been published
- We're seeing bearish divergences in the RSI ...

Please take a look at our idea and let us know what you think!

+1 Reply
TradingShot Safe_Signal
@Safe_Signal, Nice use of the pressure zones. Thanks for sharing.
Reply
@seba26-77, Thanks seba. It did break the 7400 level evidently.
Reply
seba26-77 TradingShot
@TradingShot, The last green arrow is still in the game
Reply
New maximums below the previous pivot. Bearish patterns in smaller time frames. Careful with taking long positions after all these pumps, and if you decide to take them, set a tigh stop-loss right below the last pivot at $7,730

+1 Reply
TradingShot CopilotThe
@CopilotThe, 6000 appears to be more attractive now.
Reply
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