As you can easily see on the price chart, the bitcoin halving event was followed by an enormous price increase in two out of two cases. But that's not the only thing that catches the eye: Interestingly enough, shortly before the event, an enormous sale followed, which amounted to a correction of about 42 percent.
If this pattern were to repeat, one possible scenario would be a rebound at the trend line of the descending triangle, which is just above the 0.382 Fib level. The Bitcoin price could then either correct to the golden ratio at around $7,200, or to the horizontal support point at $6,200. The lowest target price would be $5,500, where the 50-month EMA is rushing to support. However, at this point in time, this is very unlikely.
As Bitcoin has broken out of a bullish, falling wedge in the monthly chart and the monthly candle could not be more bullish, a price target of just under $11,300 could be expected. The next bull target is $13,800, which must be broken so that Bitcoin can finally change from a bear trend to a bull trend. But even if the $11,000 mark is reached, a correction of almost 42 percent implies a correction target of around $6,500. Therefore, in the bull case, I will refrain from imitating the correction pattern of the previous halving events. After reaching the correction target of $11,300, bitcoin finds strong support at the golden ratio of $8,200.
If Bitcoin tests the $13,800 again before the halving event, bitcoin will already find support between $9,000 and $9,300, where the next golden ratio will be. This implies a correction of about 36 percent.
If this pattern were to repeat, one possible scenario would be a rebound at the trend line of the descending triangle, which is just above the 0.382 Fib level. The Bitcoin price could then either correct to the golden ratio at around $7,200, or to the horizontal support point at $6,200. The lowest target price would be $5,500, where the 50-month EMA is rushing to support. However, at this point in time, this is very unlikely.
As Bitcoin has broken out of a bullish, falling wedge in the monthly chart and the monthly candle could not be more bullish, a price target of just under $11,300 could be expected. The next bull target is $13,800, which must be broken so that Bitcoin can finally change from a bear trend to a bull trend. But even if the $11,000 mark is reached, a correction of almost 42 percent implies a correction target of around $6,500. Therefore, in the bull case, I will refrain from imitating the correction pattern of the previous halving events. After reaching the correction target of $11,300, bitcoin finds strong support at the golden ratio of $8,200.
If Bitcoin tests the $13,800 again before the halving event, bitcoin will already find support between $9,000 and $9,300, where the next golden ratio will be. This implies a correction of about 36 percent.
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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.