now am definitely sure that you're making some really great profits with this pattern if you've followed all the parts of this series, before moving to the above chart we need to look from higher degree to see where are we actually right now and where we can go. so lets start from the weekly chart
you can see that how precisely prices are respecting fibonacci levels, after the last bear market in 2018 prices exactly bounced from fib382, and in case prices keep dropping from here the major support in weekly chart is fib236 which is between 6500 - 6250, notice that this level was the major in 2018 bear market.
moving to the 3 days chart prices exactly retraced from fib786 and made a , which shows the nature of wave B or X works as a bull trap, now here we have 3 major supports, fib618 at 9800 which has been already tested for 3 times and already broken by the time of writing this, second major support is fib50 at 7800, which wont perform as a strong support, coz then will be completely and lots of sellers will start to unload their bags. third majorsupport is fib382 around 6350 which is also weekly so most probably buyers will take control from here.
moving towards the , is also indicating the same support levels, fib236 at 9800 which is already broken, fib382 around 7900 will have lots of pressure from sellers and fib50 at 6600 could be the strong level to defend for bears.
now along with all this bulls have also support of 200MA in , which is right now at 6200 but in coming days prices could get a support of 200MA between 6300 - 6600.
all this charts are confirming two major levels to watch, 8000-7800 and 6300-6600
now getting in to the 4h chart prices are forming a along with going lower lows and lower highs formation, indication for a strong downtrend.
finalizing this look how patterns has first formed a formation like a diagonal or Inverse head and shoulder, and most of the buyers have trapped, expecting a rally after a pullback, exactly thats what happening right now, from here we can see a five wave formation towards lower low, just like above two patterns have formed.
this movement could lead us to our first major which is between 8000-7800, which is also the major zone of current rally between fib1618 and fib1786.
from here we can see a nice rally, which buyers could take aggressively, but chances are low for that rally to sustain and maintain prices going higher, and in coming days we could see a major dump towards the major of 6600-6300, till than best of luck and you can short from here according to the support levels i've mentioned.
that's all for now, dont forget to like and share this idea with your well wishers and do follow us for future updates.
this is husain zabir, signing out, thankyou
enjoy... and keep sharing keep supporting us:)
What do you think of the longer term outlook of bitcoin this year and next? Let's say after 6600, do you think we are in an overall bull market with new ATH after? (Of course no way to be sure, but wondering your thoughts)