BTC Is currently testing some very long term resistance at the top of the triangle trend line, along with $ETH. This trend line has shown as some pretty serious resistance in the past. I am not saying that it will not break upwards through the trend line, but it is pretty unlikely right now.I will still be posting stop losses and possible buy ins, if
BTC does decide to break through this resistance line (which i find unlikely due to the low volume). In this case i expect it to be a pretty harsh reversal, and we can easily see the points where price will find support on the way down. (The Horizontal Lines in White) On a closer time frame you can see more specifically where the price may end up. And they happen to line up PERFECTLY with all of the Fibonacci levels of the big wave.
As you can see based on the horizontal lines across the entire chart, there will be obvious movement around these Fibonacci areas. Including the 38% and 50% retracement level, the 62% (Golden Pocket), and possibly, if it doesn't reverse by then, the 78% levels all the way down to 6k!! Which has also been serious support in the past. This could be the next and last low.
If we are looking at fractals, the last wave that started at the bottom of the trend and hit the top ended up retracing down to the GOLDEN POCKET!! (61.8% - 65%) This tends to be strong S/R a lot of the time.
A long with the Fibonacci levels, the 200 and 50 MA seem to line up quite well with where the price could end up/show resistance. The moving averages are always a good place to watch, and is a good place to watch for closing. And possible trend reversal.
As of right now we are above a Golden Cross and in an uptrend above the moving averages. The only thing that would show signs of a downtrend are if the price decides to push past the GOLDEN POCKET Fib level and fall down to 6k. I think we will see a possible bull side reversal around 7.5K which happens to be the 38% Fib level. This is just what i assume for now. I will obviously be watching very closely and reacting and possible changing my positions.
Related publications
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.
Related publications
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.