Decline to $2000 or $1500 Support
There is a precedent in the bitcoin price chart to target at least a 1.618 Fib extension once it breaks a consolidation trendline (grey).
Although this does not happen with any reliable guarantee, the large gap between MACD and its zero line (in the attached 1day chart) is often an indication of a large decline.
Note that the level of the 1.618 Fib extension overlaps with the level of the 1day 200MA (red), as well as a previous area of S&R that could provide support.
Panicked sell-off may target as low as the 2.618 Fib extension, and such a spike should be quickly retraced or the long-term uptrend may roll over into a protracted period of decline.
If $1500 support holds, then advance to $3000 and above is likely to resume as market participants hoard bitcoin in anticipation of a potential post-August 1st coin-doubling event.
This analysis was first posted at Cryptocurrents in June 2017.
Although this does not happen with any reliable guarantee, the large gap between MACD and its zero line (in the attached 1day chart) is often an indication of a large decline.
Note that the level of the 1.618 Fib extension overlaps with the level of the 1day 200MA (red), as well as a previous area of S&R that could provide support.
Panicked sell-off may target as low as the 2.618 Fib extension, and such a spike should be quickly retraced or the long-term uptrend may roll over into a protracted period of decline.
If $1500 support holds, then advance to $3000 and above is likely to resume as market participants hoard bitcoin in anticipation of a potential post-August 1st coin-doubling event.
This analysis was first posted at Cryptocurrents in June 2017.
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