Correlation between fibonacci and break out strategy
Hello all, welcome back. How are you doing? I hope you are doing great. At the first time, I want to share about my thought and analysis on bitcoin in weekly views, but then I found an interesting topic before we see the weekly view about bitcoin. so, let's get to the topic on it.
If you see those chart, we see a clear resistance trend line that has held the prie since August 6th and the the break out to the upside occur on september 2nd. But, after those break out, I haven't seen any retest toward this resistance that is now become a support as well.
And I see a beautiful correlation between this resistance trend line and the fibonacci retracement levels. Fibonacci is one of my favorite tools that is pretty fit with my trading style. you can see at those chart, we can see the golden pocket region is moving align with previous strong support around $9960. I see a huge possibility for bitcoin to touch this region again.
But the main question is it going to hold the price? Honestly, that would be a very difficult question to answer. but based on my opinion, with this negative sentiment it is very hard to argue that bitcoin will continue its bull rally soon. so, my bias still remain the same that the price will touch the golden pocket zone as the 1st target, 78.6 fib levels as the 2nd target and $9300 as the 3rd target for mid term view. So far, my scenario is still in a good play.
Thank you.
If you see those chart, we see a clear resistance trend line that has held the prie since August 6th and the the break out to the upside occur on september 2nd. But, after those break out, I haven't seen any retest toward this resistance that is now become a support as well.
And I see a beautiful correlation between this resistance trend line and the fibonacci retracement levels. Fibonacci is one of my favorite tools that is pretty fit with my trading style. you can see at those chart, we can see the golden pocket region is moving align with previous strong support around $9960. I see a huge possibility for bitcoin to touch this region again.
But the main question is it going to hold the price? Honestly, that would be a very difficult question to answer. but based on my opinion, with this negative sentiment it is very hard to argue that bitcoin will continue its bull rally soon. so, my bias still remain the same that the price will touch the golden pocket zone as the 1st target, 78.6 fib levels as the 2nd target and $9300 as the 3rd target for mid term view. So far, my scenario is still in a good play.
Thank you.
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