Bitcoin Price Analysis Adjusted for Inflation: Key Reaction LeveOverview
In this analysis of the BTC/USDT pair adjusted for inflation using the M2 money velocity (M2V), we examine the key Fibonacci levels and potential reactions from order blocks (OB) and fair value gaps (FVG). This provides a more accurate perspective on Bitcoin's price action in the context of inflation.
Key Levels and Analysis
Current Price: BTC/USDT adjusted for M2V is trading at 43,235.36, with a 1.57% increase.
Fibonacci Levels:
0.236: 49,231.96
0.382: 42,763.04
0.5: 37,534.73
0.618: 32,306.42
0.786: 24,862.72
Potential Reaction Levels
0.5 Fibonacci Level (37,534.73):
Order Block (OB): Just below the 0.5 level, an order block is present, indicating a potential strong support zone.
Fair Value Gap (FVG): This zone also aligns with a fair value gap, suggesting a high probability of a significant price reaction.
Targets
Target 1: 49,231.96 - Key resistance level based on the 0.236 Fibonacci retracement.
Target 2: 59,688.58 - Major resistance aligned with the 0 Fibonacci retracement level.
Target 3: 87,331.31 - Based on the 0.618 Fibonacci extension.
Target 4: 115,152.95 - Ultimate bullish target at the 1.618 Fibonacci extension level.
Harmonic Patterns
The chart shows a large harmonic pattern Cypher, indicating potential reversal zones:
Point C: Previous peak, suggesting areas of interest for resistance and support.
Current Price Action
Support Levels: Immediate support at the 0.382 Fibonacci level (42,763.04). Stronger support anticipated at the 0.5 level (37,534.73) due to the presence of OB and FVG.
Resistance Levels: 0.236 Fibonacci level (49,231.96) as the first major resistance.
Potential Scenarios
Bullish Scenario: Holding above the 0.382 level could lead to a break above the 0.236 level, targeting 59,688.58 and higher.
Bearish Scenario: If the 0.382 level fails, a drop to the 0.5 level is likely, where a strong reaction is expected due to OB and FVG.
Conclusion
Adjusting for inflation with the M2 money velocity offers a clearer view of Bitcoin's real value. The 0.5 Fibonacci level (37,534.73) is critical, with strong support from OB and FVG, suggesting a significant price reaction. Monitoring these levels will provide valuable insights for trading decisions. Share your thoughts and analysis in the comments below!
Disclaimer: This analysis is for educational purposes only and should not be considered as financial advice. Always do your own research before making any trading decisions.
