Ep. 4 - BTC Prediction By Channels, Secret Fib & Unique Gann FanBitcoin Price Prediction Using Channels, Fibonacci & Gann Fan | Signal & Structure Episode 4
In this concise yet powerful episode, we combine three advanced technical analysis tools to identify high-probability support zones for Bitcoin's current correction. This multi-confluence approach demonstrates how stacked logarithmic channels, Fibonacci retracements, and Gann fans work together to pinpoint critical price levels.
Techniques Demonstrated:
1. Channel Validation Theory
- Proves that any trend line can become a valid channel
- Shows how to convert the COVID crash to bear market bottom trendline into a working channel
- Demonstrates perfect alignment with historical tops
2. Stacked Channel Refinement
- Creates a smaller channel where the top touches the midline of the larger channel
- This subdivides the original channel into quarters
- Provides additional confluence levels for support/resistance
3. Fibonacci Retracement Application
- Maps the key retracement levels from recent bottom to top
- Focuses on the "Golden Pocket" (0.618-0.786)
- Identifies 0.702 as the Optimal Trade Entry (OTE) level
4. Gann Fan on Logarithmic Scale (Unique Technique)
- Anchors 45-degree angle from the peak
- Aligns Gann Fan 1x1 line with the 45-degree angle
- Uses Gann lines to track momentum decay:
- 1/8 → 1/4 → 1/3 (bearish progression)
- 1/1 as recovery signal
- 8/1 as ultimate resistance breakout
Key Confluence Zone Identified:
The analysis reveals a critical support box between:
- 0.618 - 0.786 Fibonacci levels
- Validated by 1/3 Gann Fan line
- Supported by stacked channel structure
This triple confluence creates a high-probability reversal zone where multiple technical factors align.
Trading Insights:
Current Market Position:
- Price following bearish momentum path along Gann lines
- Moving from 1/8 toward 1/3 line
- Range-bound action expected until 1/1 line reclaimed
Recovery Signals to Watch:
- Breaking above 1/1 Gann line (45-degree angle) = trend recovery
- Ultimate bullish confirmation: Breaking 8/1 line
- Support zone provides optimal risk/reward entry area
Technical Setup:
- Timeframe: Weekly chart
- Scale: Logarithmic (essential for both channels and Gann)
- Tools: TradingView's Fib Retracement, Gann Fan, Parallel Channel
This episode demonstrates how combining multiple technical tools on logarithmic scale can identify precise support/resistance zones. The convergence of three independent methods at the same price area significantly increases the probability of a meaningful reaction.
The unique application of Gann Fan on log scale, aligned with the 45-degree angle, provides a momentum roadmap that most traders miss. This technique is particularly powerful for tracking trend strength degradation and identifying potential reversal points.
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