Previous Bitcoin Red Candle Streaks = 61.8% Bullish Retracements
We are in the midst of 7 straight red candles on the daily chart for Bitcoin.
The last time this happened was in September of 2017.
The longest before that was an 8 day streak in January of 2016.
In BOTH of those instances, Bitcoin regained (fibonacci retracement) 61.8% of the loss within 4-5 days of the bottom. This is valuable info in setting a target if it has a similar bounce this time around.
As I posted on another chart, there is actually some positive news out there... so whether the bearish momentum is that strong, or the market just has not digested the news, I don't know. But here it is...
--Coinbase announced Ethereum Classic will be functional by August 7th, and trading to follow 2 days after deposits are twitter.com/coinbase.../1025474348742660096
--Intercontinental Exchange Announces Bakkt, a Global Platform and Ecosystem for Digital Assets
-Launch of regulated, physical Bitcoin futures contract and warehouse planned for November 2018
-Bakkt to draw on expertise from leading companies across regulated markets, risk management, technology and consumer experience including BCG, Intercontinental Exchange, Microsoft and Starbucks
www.businesswire.com...l-Platform-Ecosystem
--Coinbase CUSTODY is exploring support for nearly 40 coins for storage. blog.coinbase.com/co...-assets-e700496844be
In any case, this streak of daily red candles is getting into record territory, so I believe it is helpful to look to the left to see what happened in previous situations. I hope these two examples will help you set your stop and targets.
I will add, a comparable level to where we are now, would be a target of $7700-$7800, which is actually a nice support/resistance zone. I could see it getting to there, then pulling back a bit, then continuing on bullish in the weeks ahead.
Thanks for viewing. Please give a 'like' if you found this to be valuable.
Travis
JMJ - UIOGD
The last time this happened was in September of 2017.
The longest before that was an 8 day streak in January of 2016.
In BOTH of those instances, Bitcoin regained (fibonacci retracement) 61.8% of the loss within 4-5 days of the bottom. This is valuable info in setting a target if it has a similar bounce this time around.
As I posted on another chart, there is actually some positive news out there... so whether the bearish momentum is that strong, or the market just has not digested the news, I don't know. But here it is...
--Coinbase announced Ethereum Classic will be functional by August 7th, and trading to follow 2 days after deposits are twitter.com/coinbase.../1025474348742660096
--Intercontinental Exchange Announces Bakkt, a Global Platform and Ecosystem for Digital Assets
-Launch of regulated, physical Bitcoin futures contract and warehouse planned for November 2018
-Bakkt to draw on expertise from leading companies across regulated markets, risk management, technology and consumer experience including BCG, Intercontinental Exchange, Microsoft and Starbucks
www.businesswire.com...l-Platform-Ecosystem
--Coinbase CUSTODY is exploring support for nearly 40 coins for storage. blog.coinbase.com/co...-assets-e700496844be
In any case, this streak of daily red candles is getting into record territory, so I believe it is helpful to look to the left to see what happened in previous situations. I hope these two examples will help you set your stop and targets.
I will add, a comparable level to where we are now, would be a target of $7700-$7800, which is actually a nice support/resistance zone. I could see it getting to there, then pulling back a bit, then continuing on bullish in the weeks ahead.
Thanks for viewing. Please give a 'like' if you found this to be valuable.
Travis
JMJ - UIOGD
I have a very old and recently relevant resistance at $7736.
I have personally put in sell orders at $7700 (but i will be watching the market closely in the times ahead. I don't really want to sell into the ETF decision coming, or the ETC listing on coinbase )
Another note: when the red candle streak in September 2017 commenced, and the 61.8% bullish bounce finished, bitcoin pulled BACK nearly 61.8%....and then it went on the 3 month bullish run to near $20,000.
Time will tell if something similar plays out, but it sure would be nice.