Bitcoin - Where's The Trend Headed?
I am very bullish on Bitcoin.
Here is why:
On the long term time frame, Bitcoin's major recent pullback only came back 61%.
Therefore, since a trend is officially over after a 70% plus retracement, it is technically still in an uptrend.
Where is it headed?
My speculation is the 13000 level, and maybe a hard spike to the 14000 level, before a 23%-38% retracement.
Why here?
Because this is where support turned into resistance on the recent pullback, which makes it a key level to watch.
For a better picture of what I mean, here is a 4hr time frame snapshot.
The two circles on the left highlight where support turned into resistance.
The far left circle is where support formed.
The circle to the right of it is where price broke support and then faced resistance getting back above it.
The far right circle is where I speculate price is headed, since there was just a pullback recently.
Although price action remains in the lower two quadrants of the Fibonacci Fan, it is holding the second line nicely.
Therefore, I think the trend is stable with room to grow into the 13000/140000 level.
But, we will see!
Good luck!
Nice Analysis!
Thank you! It never made it to the 13000/14000 level, but it did pullback. For it to reach 13000, it would have had to leave the Fibonacci Fan, which would mean a new uptrend. In hindsight, it was too early for a new uptrend, so it retested the previous support level of 6K.
However, it just left the Fibonacci Fan within the past week after someone made a huge move to the upside, so IMO that makes for a nice buy point.