This is my long term course of action I think bitcoin could potentially follow.
This is for swing traders looking to enter a trade and walk away for a few months. Not for intra day trading.
June 10 was a crucial day for bitcoin as it broke through a key resistance at the .65 Fibonacci level. (golden pocket)
As you can see bitcoin hit .65 fib levels twice prior in the year and that was a good indication that if tested again it would likely break.
Present day. Bitcoin is currently hovering the $6,100 price range +/- 5%.
Yesterday we broke through $6,000 but we could not maintain the breakthrough.
As of right now I believe BTC is going to see a retrace to resistance levels around $6,400, $6,600, $6,800, $7,000, $7,200. These have been crucial resistance/support levels for us so far below the $9,000 mark. The RSI and MACD histogram have been Bullishly diverging which is why i think we are going to see a little retrace upwards.
I am anticipating at one of these resistance levels we are going to see a hard rejection and likely fall to our bottom. I am projecting we see that rejection between $6,400-$7,000 as there has been a lot of resistance around that area.
I currently see a bottom around $4,735 (.786) Fibonacci level.
For long positions:
I would slowly start to ladder in positions once we hit $5,800 with confirmation, and continue to ladder in until we have confirmation of our bottom. Do not assume 100% that our bottom is $4,735. If that breaks we could continue to downtrend. It is best to spread out your positions as it gives you a better dollar cost average and its a better way to keep your positions protected and not get liquidated.
Once we have hit our bottom with confirmation, we still have a long way to go before we get to our ATH. Remember what was previously a support now turns into a resistance and vice versa.
My targets for our climb back up will be as follows:
T1 - $8,200
T2 - $10,300
T3 - $12,100
T4 - $14,000
T5 - $16,200
T6 - $19,500
T7 - $MOON
These target will be +/- 10% and will depend on news, volume, regulation FUD, FOMO, etc. Something as simple as the SEC ETF ruling could sky rocket bitcoin. Just something to keep in mind.
I have drawn a few visual paths where I see BTC hitting resistance and support levels. These are just estimates, and the paths can very depending on what reaction occurs at each fib, resistance and support levels.
In my opinion I do not see BTC hitting a new ATH this year as per my chart.
I will note, I don't necessarily think it will take as long to reach a new ATH as what I have outlined in my chart. But I do believe it will follow a similar path way to get there.
This is not financial advise. You need to do your own research.
Happy trading
Cheers,
mk6dunc
This is for swing traders looking to enter a trade and walk away for a few months. Not for intra day trading.
June 10 was a crucial day for bitcoin as it broke through a key resistance at the .65 Fibonacci level. (golden pocket)
As you can see bitcoin hit .65 fib levels twice prior in the year and that was a good indication that if tested again it would likely break.
Present day. Bitcoin is currently hovering the $6,100 price range +/- 5%.
Yesterday we broke through $6,000 but we could not maintain the breakthrough.
As of right now I believe BTC is going to see a retrace to resistance levels around $6,400, $6,600, $6,800, $7,000, $7,200. These have been crucial resistance/support levels for us so far below the $9,000 mark. The RSI and MACD histogram have been Bullishly diverging which is why i think we are going to see a little retrace upwards.
I am anticipating at one of these resistance levels we are going to see a hard rejection and likely fall to our bottom. I am projecting we see that rejection between $6,400-$7,000 as there has been a lot of resistance around that area.
I currently see a bottom around $4,735 (.786) Fibonacci level.
For long positions:
I would slowly start to ladder in positions once we hit $5,800 with confirmation, and continue to ladder in until we have confirmation of our bottom. Do not assume 100% that our bottom is $4,735. If that breaks we could continue to downtrend. It is best to spread out your positions as it gives you a better dollar cost average and its a better way to keep your positions protected and not get liquidated.
Once we have hit our bottom with confirmation, we still have a long way to go before we get to our ATH. Remember what was previously a support now turns into a resistance and vice versa.
My targets for our climb back up will be as follows:
T1 - $8,200
T2 - $10,300
T3 - $12,100
T4 - $14,000
T5 - $16,200
T6 - $19,500
T7 - $MOON
These target will be +/- 10% and will depend on news, volume, regulation FUD, FOMO, etc. Something as simple as the SEC ETF ruling could sky rocket bitcoin. Just something to keep in mind.
I have drawn a few visual paths where I see BTC hitting resistance and support levels. These are just estimates, and the paths can very depending on what reaction occurs at each fib, resistance and support levels.
In my opinion I do not see BTC hitting a new ATH this year as per my chart.
I will note, I don't necessarily think it will take as long to reach a new ATH as what I have outlined in my chart. But I do believe it will follow a similar path way to get there.
This is not financial advise. You need to do your own research.
Happy trading
Cheers,
mk6dunc
we almost hit .786 fib level. I am anticipating a rejection from either $6,866 or .65 fib level to bring us back down towards our lower support levels. We want to see $5,800 break with confirmation and then $5,500. Keep an eye on these areas.
I will update more as we keep moving on our path.
Cheers,
mk6dunc