Escape Velocity needed for Bitcoin Space Launch - Fib based view
- Bitcoin price is at an important launch zone here. The resistance though weak (Price crossing psychological resistance of 50000 will make the 0.618 Fib retracement from last significant low to ATH & current Fib extrension resistance of 2.236 Fib level a weak confluence), given the bullish daily candle, Bitcoin will face its first Hurdle on its journey to another All Time High and requires strong bullish Momentum and Escape Velocity for launch in this zone.
- The price should skyrocket from here to test the previous All Time High where it will face the 2nd Major Hurdle. History of Bitcoin prices show that double tops and 3.236 Fib extensions play very little role in reversals.
- Also, given the nature of the current Crypto market where the masses are discovering the fair price for Bitcoin, this hurdle of previous ATH will be smashed for a strong move to the current 1.272 Fib retracement where the Exhaustion begins.
- When price reaches here, One Final Push to the Exhaustion limits can be expected as this zone is the 1.618 Fib level of the current Fibonacci Retracement and also coincides with the natural exhaustion limits of 4.236 - 4.618 Fib Extension shown on the right.
The chart uses the log scale for analysis. Let us look at normal scale and see how this translates.
Major difference is that the 2nd Major Hurdle near the previous All Time High will be the Natural Exhaustion limits zone of 4.236 - 4.618 of the Fib Extension. Based on market curiosity and market greed taking over near ATH, the log scale levels look more relevant.
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This analysis is purely to showcase Price action in relation to Fibonacci levels and should not be taken as financial advice. Do Your Own Research before trading with real money as Crypto markets are highly volatile and requires exceptional risk management strategy.
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