Chart of the last big liquidation in May is repeating!
As we saw in the last cycle from Q4 2020 until mid July 2021 we formed a large head-and-shoulders on the big scheme of the daily chart. Due to the overall uptrend of Bitcoin this bearish pattern got invalidated as soon as we hit the critical neckline point where it should have dropped.
Then we went onto the next cycle from end of July until now. Where we saw a massive adoption of the blockchain technology, therefore a major growth of Bitcoin (as a represantative of the overall structure in the crypto market) and crypto in general.
During this cycle now we interestingly formed the exact same head-and-shoulder pattern and are now at the end-part of this pattern. So because of the quite accurate similarity I made a ghost picture of the price movement after the last cycles large liquidation in May 2021. Then I placed this ghost structure at the point of our last big liquidation at the beginning of december. I managed to place it the right way, so that there is as little deviation as possible.
What we are able to see now is that this ghost price-movement is corresponding almost perfectly with the indicated Fibonacci Levels.
The first support of this ghost movement is perfectly aligned with the 0.168 Fib Retracement level and also with the trendline of the overall trend.
The next resistance movement of the ghost feed is to be found at the 52k area which matches with the recent yet unfolded chart, in fact it coincides exactly with the local resistance. This is turned into support and then immediately is retested right after the rejection at the 0.236 Fib.
After this movement it breaks all time high and soon retests it before it heads up to new ATH.
I find this very interesting.
In fact until now the Bitcoin price is following exactly that same pattern.
Then we went onto the next cycle from end of July until now. Where we saw a massive adoption of the blockchain technology, therefore a major growth of Bitcoin (as a represantative of the overall structure in the crypto market) and crypto in general.
During this cycle now we interestingly formed the exact same head-and-shoulder pattern and are now at the end-part of this pattern. So because of the quite accurate similarity I made a ghost picture of the price movement after the last cycles large liquidation in May 2021. Then I placed this ghost structure at the point of our last big liquidation at the beginning of december. I managed to place it the right way, so that there is as little deviation as possible.
What we are able to see now is that this ghost price-movement is corresponding almost perfectly with the indicated Fibonacci Levels.
The first support of this ghost movement is perfectly aligned with the 0.168 Fib Retracement level and also with the trendline of the overall trend.
The next resistance movement of the ghost feed is to be found at the 52k area which matches with the recent yet unfolded chart, in fact it coincides exactly with the local resistance. This is turned into support and then immediately is retested right after the rejection at the 0.236 Fib.
After this movement it breaks all time high and soon retests it before it heads up to new ATH.
I find this very interesting.
In fact until now the Bitcoin price is following exactly that same pattern.