BTC: Correction low in the 37.5k-38.5k range
BTC remains aligned to our "Q4 2021 Prediction" from the 6 September, "2 Week Potential Price Path" from the 7 September and "10 Day Potential Price Path" from the 9 September.
I am of the view that BTC will find a bottom within the 37.5k-38.5k range and recent price action adds validity to this opinion for the following reasons:
- Point A: 38.3k is the 0.618 retracement of the July-September rally
- Point B: 37.5K is the 100% Fibonacci extension of the 1st leg lower by BTC (indicative of an ABC Elliot Wave correction)
- Point C: False break on the 1hr charts of the descending resistance in a descending wedge has triggered the final leg lower.
- Green rectangle: the apex of a descending wedge that coincides with points A and B.
An alternative low is 41.1k, as this is the 50% retracement of the July-September rally and 0.618 Fibonacci extension of the 1st leg lower. However, the initial view places the bottom closer to the descending wedge apex.
Trade Plan: Reduce short positions before 38.5k and start buying altcoins that have the most growth potential when the bull-run continues. However, a confirmed break of the descending wedge resistance prior to 38.5k should signal that the bottom is in place and that it is time to go long
I will publish a list of my 7 favorite low-cap altcoins from a technical and fundamental perspective once we have confirmation that the BTC bottom is in place, including VEGA Protocol vega.xyz/
I am of the view that BTC will find a bottom within the 37.5k-38.5k range and recent price action adds validity to this opinion for the following reasons:
- Point A: 38.3k is the 0.618 retracement of the July-September rally
- Point B: 37.5K is the 100% Fibonacci extension of the 1st leg lower by BTC (indicative of an ABC Elliot Wave correction)
- Point C: False break on the 1hr charts of the descending resistance in a descending wedge has triggered the final leg lower.
- Green rectangle: the apex of a descending wedge that coincides with points A and B.
An alternative low is 41.1k, as this is the 50% retracement of the July-September rally and 0.618 Fibonacci extension of the 1st leg lower. However, the initial view places the bottom closer to the descending wedge apex.
Trade Plan: Reduce short positions before 38.5k and start buying altcoins that have the most growth potential when the bull-run continues. However, a confirmed break of the descending wedge resistance prior to 38.5k should signal that the bottom is in place and that it is time to go long
I will publish a list of my 7 favorite low-cap altcoins from a technical and fundamental perspective once we have confirmation that the BTC bottom is in place, including VEGA Protocol vega.xyz/
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.