BTC is currently rejecting off the bottom of the 161.8% Fib Channel Extension and is looking to make a lower low and test the supply zone in the region of 87k.
Fibonacci Channels are notoriously subjective, which is why it is always important to validate any price interaction with these channel levels prior to making trading decisions.
In this case with BTC, I have drawn the Fib Channel with these vertices marked in blue circles.
Adding in the 3 extension levels (123.6%, 138.2%, 161.8%), indicated by the blue arrow, we can see that this channel is still proving to be a valid application beyond the 100% level.
Zooming in to the lower timeframe (30min) provides further validation of these extension levels.
Finally, applying a traditional Fibonacci retracement tool to the bearish move from 108k down to 92k, shows that the first extension take profit region (between 87.9k and 86.5k) aligns well with the yellow box that marks the demand zone from the initial consolidation in this region.
Layering in a short position now, with a target of 87k is the goal of this idea. The idea is invalidated if we move above 95k again in the short term.
Fibonacci Channels are notoriously subjective, which is why it is always important to validate any price interaction with these channel levels prior to making trading decisions.
In this case with BTC, I have drawn the Fib Channel with these vertices marked in blue circles.
Adding in the 3 extension levels (123.6%, 138.2%, 161.8%), indicated by the blue arrow, we can see that this channel is still proving to be a valid application beyond the 100% level.
Zooming in to the lower timeframe (30min) provides further validation of these extension levels.
Finally, applying a traditional Fibonacci retracement tool to the bearish move from 108k down to 92k, shows that the first extension take profit region (between 87.9k and 86.5k) aligns well with the yellow box that marks the demand zone from the initial consolidation in this region.
Layering in a short position now, with a target of 87k is the goal of this idea. The idea is invalidated if we move above 95k again in the short term.
Order cancelled
Price has regained the channel and has formed a higher low on the smaller timeframe charts. I've circled what now looks to be a liquidity sweep below the original low of the push that I drew the fib retracement tool on.Sitting out for now, waiting on confirmation of direction before acting.
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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.