Verdict about bitcoin and the essence of Fibonacci
Although the price has already had a spike after a test at the $44000 zone at February 23rd, The bears are now taking over control for the whole market structure. A huge rejection since the .5 Fibonacci retracement is another confirmation of the potential drop in the future.
The real essence of doing the Fibonacci measurement is to identify the significant levels that can be a potential bouncing or rejection point of the whole market structure. However, we can see the Fibonacci as the indicator to measure the strength of momentum which correct the major trend. In this case, it will be useful to measure the strength of the momentum of bullishness.
Based on the current structure, price of the bitcoin only retrace at the .5 Fibonacci retracement which isn't even close to the golden pocket zone. So, I'll rather see a potential continuation toward the downside than the upside movement for the short term.
For the below target, I'll see the -.382 Fibonacci retracement and the -.618 Fibonacci retracement. It will simply around the $40000 and considering the -.618 as the golden ratio, it can be the liquidation zone if we see any panic selling in the market. Verdict? DOWN!
The real essence of doing the Fibonacci measurement is to identify the significant levels that can be a potential bouncing or rejection point of the whole market structure. However, we can see the Fibonacci as the indicator to measure the strength of momentum which correct the major trend. In this case, it will be useful to measure the strength of the momentum of bullishness.
Based on the current structure, price of the bitcoin only retrace at the .5 Fibonacci retracement which isn't even close to the golden pocket zone. So, I'll rather see a potential continuation toward the downside than the upside movement for the short term.
For the below target, I'll see the -.382 Fibonacci retracement and the -.618 Fibonacci retracement. It will simply around the $40000 and considering the -.618 as the golden ratio, it can be the liquidation zone if we see any panic selling in the market. Verdict? DOWN!
