From the high 69k to Covid crash using the Fibonacci Retracement tools we can see that we hit the 0.786 (~17.7K) and bounced.
If we use the Fibonacci levels on the waves up and down we can see some nice confluence in levels.
The first wave down from 69k to ~32.9k has a fib extension 1.618 that lines up with the 0.886 level.
10k-11k range, the strongest support we can get on BTC.
The first corrective wave i-ii fib extension was in confluence with the 0.786 level mentioned at the beginning.
Now we are in the iii-iv wave and I'm not expecting this to go above 32k-33k this should become resistance. And then the final wave down to ~11k should start. If we get there we should also see some bearish divergences on the MACD histogram.
A full reset to the 0.886.
Now technically we never closed below the previous cycle high weekly close.
Maybe this is not a 12345 Wave and this was a ABC correction. Then uptrend has resumed as the ABC finished.
Looking at the BLX at previous corrections we can clearly see some contraction. 93.7%, 86%, 84%, but are we stopping at 74% ?
A closer look
If we use the Fibonacci levels on the waves up and down we can see some nice confluence in levels.
The first wave down from 69k to ~32.9k has a fib extension 1.618 that lines up with the 0.886 level.
10k-11k range, the strongest support we can get on BTC.
The first corrective wave i-ii fib extension was in confluence with the 0.786 level mentioned at the beginning.
Now we are in the iii-iv wave and I'm not expecting this to go above 32k-33k this should become resistance. And then the final wave down to ~11k should start. If we get there we should also see some bearish divergences on the MACD histogram.
A full reset to the 0.886.
Now technically we never closed below the previous cycle high weekly close.
Maybe this is not a 12345 Wave and this was a ABC correction. Then uptrend has resumed as the ABC finished.
Looking at the BLX at previous corrections we can clearly see some contraction. 93.7%, 86%, 84%, but are we stopping at 74% ?
A closer look
