Could bitcoin retrace to the $8000 or even the $5000 level?
* I am not an financial advisor. Nothing that I write is financial advice. Trade on your own risk.
When you look at this monthly BTC chart, what do you see?
1. 1 big and very long move to the upside which lasted a few months
2. 1 big correction which is taking much longer than the average ''short term'' corrections that bitcoin has experienced.
This leads me to the next question.
Is this a healthy correction and is the major trend still bullish or is the major trend turning bearish? And if so, at what price points could we expect the bulls to take charge again?
I'll be using technical analyses to make a projection but keep in mind that technical analyses isn't the holy grail. It can help but it won't give us any guarantees.
So lets begin.
What are you looking at:
1. Monthly chart of bitcoin/usd
2. The colors that you see are called the fibonacci retracement levels. The price of different kind of assets often retrace to one of these levels after a bullish move. So the price will either retrace to the 23,6%, 38,2%, 50%, 61,8% or the 78,6%. I'm not going in to why this is the case because I could write a whole other post about this. If you want, you can look it up yourself.
So if the price of bitcoin would retrace to one of these levels. What could we expect? Well bitoin already retraced to the 23,6%, the 38,2% and it also touched the 50% retracement level.
This 50% retracement level got rejected, meaning that there were to many buyers to close at this level but we could test that 50% retracement level for a second time. Bitcoin could drop even further and test the retracement level of 61,8% or even 78,6%.
If that happens we could possibly see levels of $8000 or even $5000 dollar per bitcoin.
I certainly do not hope that this will be the case but I must acknowledge the fact that it's a possibility.
I
When you look at this monthly BTC chart, what do you see?
1. 1 big and very long move to the upside which lasted a few months
2. 1 big correction which is taking much longer than the average ''short term'' corrections that bitcoin has experienced.
This leads me to the next question.
Is this a healthy correction and is the major trend still bullish or is the major trend turning bearish? And if so, at what price points could we expect the bulls to take charge again?
I'll be using technical analyses to make a projection but keep in mind that technical analyses isn't the holy grail. It can help but it won't give us any guarantees.
So lets begin.
What are you looking at:
1. Monthly chart of bitcoin/usd
2. The colors that you see are called the fibonacci retracement levels. The price of different kind of assets often retrace to one of these levels after a bullish move. So the price will either retrace to the 23,6%, 38,2%, 50%, 61,8% or the 78,6%. I'm not going in to why this is the case because I could write a whole other post about this. If you want, you can look it up yourself.
So if the price of bitcoin would retrace to one of these levels. What could we expect? Well bitoin already retraced to the 23,6%, the 38,2% and it also touched the 50% retracement level.
This 50% retracement level got rejected, meaning that there were to many buyers to close at this level but we could test that 50% retracement level for a second time. Bitcoin could drop even further and test the retracement level of 61,8% or even 78,6%.
If that happens we could possibly see levels of $8000 or even $5000 dollar per bitcoin.
I certainly do not hope that this will be the case but I must acknowledge the fact that it's a possibility.
I