pfouge
Long

#Bitcoin $BTC 50% Fib now support on pitchfork path to $5800

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
Anyone who thinks the crypto market is going to come back down hard simply needs to look at the S&P 500 chart after momentum reversal. When momentum reverses this hard you do not want to be short for long, the trend is your friend and all that.

It is folks shorting with leverage and getting stopped out that fuels the initial parabolic move, it continues as more and more traders get in line with the new trend. It can take months or years to run out of steam and for the momentum to change direction again.

Fundamentals are also in the favor of Bitcoin . As the bear market dragged on, transaction volume continued to tick higher. Segwit transactions are the majority of transactions now and they are cheaper and have effectively quadrupled the capacity of the blocks. Lightning is in advanced stages of consumer product prototyping. Many millennial cash app users will keep a portion of their savings in BTC as an inflation hedge especially if the new trend continues through 2019. A trend that starts in early 2019 is likely to continue through 2020 thanks to the Bitcoin reward halving which will reduce the supply (and thereby inflation caused by new coins) by half.

The price is finding support and resistance along the trendlines of this pitchfork , this is especially visible on the 15-minute chart.

The fact that the %50 fib is now support is very bullish . It is one of many things that confirm the new trend, which started many weeks ago

Here are the major support and resistance levels:

Support -
$4833 - Strong, 50% Fib
$5000 - Weak, humans like round numbers

Resistance -
~$5200 - Weak, 18 Sidereal month EMA
~$5500 - Strong, horizontal resistance was support on the way down
$5811 - Very Strong Support during bear market prior to capitulation also critical 78.6% Fib
You are an absolute genius with these charts. Thanks for all the awesome shares.
I wish I was there already, but its a long journey to get the knowledge and experience.
I picked up a nice buy at 4850 support, recovering some loses due to the bot buying in the retrace.
I didn't feel so bad after picking up that buy.
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pfouge WilliamJacobs
@WilliamJacobs, Thanks! It may test that level again soon and I believe it will hold. Anyone going long with leverage should be careful below $4800. If it doesn't make it back below that level by the 6th I don't think it will for a while. If we exit the pitchfork sideways without breaking 4800 that is probably okay and just means it won't hit $5800 until some time in May as I had mentioned in previous posts.

If it exits the pitchfork below $4800 there will be a lot of volatility, and it will likely find its way to $4410 eventually. I don't expect this but it is definitely in the cards.
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@pfouge, I will definitely keep an eye on that thanks.
I have however decided to stop trading BTC pairs for now, I'm going to switch the bot to USDT pairs, the bot is struggling with all the BTC movement at the moment.
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