Bitcoin heading to a strong support level, $6500
This is not a financial advice and I put it here only for my own record.
Following my previous post (https://www.tradingview.com/chart/BTCUSD/ao2qrqlI-Bitcoin-drops-after-reaching-11-5k-around-July-2019/), I have multiple Fib circles and one Pitchfork. The market at this moment perfectly respects the blue and red Fib circles. I see clearly that the market is making an HS pattern.
The red Fib circles has played resistance/support recently. Whenever we got close to one of the red circles, we saw a strong resistance or support. Even if we go up, I do not think we go above $8660. I see one blue Fib circle, another red fib circle and a significant support level by Pitchfork channel. Also, note that the Bitcoin long-to-short ratio is high enough now to see a move to the downside in price (at least, it is unlikely yo see a massive upside move).
I think we will follow down the red circle (shown by a red arrow) and the blue circle below plays a support level. Then, we move sideways (with some ups and downs) to finally reach the gray large circle. As shown in my previous post (https://www.tradingview.com/chart/BTCUSD/ao2qrqlI-Bitcoin-drops-after-reaching-11-5k-around-July-2019/), every time we approached this Fib circle we had a massive drop. I am not saying we will have a massive drop but it is very important to be cautious around that moment.
On the other hand that green line should be a very strong support. In history, it was a strong support and resistance for several times (even in 2016 and 2017, as well as recent 6 months). Can the market hold that level this time? We do not know (and no one else does either). My guess is we probably hold that level for a couple of weeks and eventually we break it.
BTW, I drew a Fib circle for RSI curve too that has played out very well so far. We will move about the middle of current channel, then we have a upside move to the upper channel and finally goes back down to have a large sell-off. Who knows?!
In my next post, I will show you why I think the market is currently overvalued and we eventually go down to at least retest the $3200.
Let me know what you think?
Following my previous post (https://www.tradingview.com/chart/BTCUSD/ao2qrqlI-Bitcoin-drops-after-reaching-11-5k-around-July-2019/), I have multiple Fib circles and one Pitchfork. The market at this moment perfectly respects the blue and red Fib circles. I see clearly that the market is making an HS pattern.
The red Fib circles has played resistance/support recently. Whenever we got close to one of the red circles, we saw a strong resistance or support. Even if we go up, I do not think we go above $8660. I see one blue Fib circle, another red fib circle and a significant support level by Pitchfork channel. Also, note that the Bitcoin long-to-short ratio is high enough now to see a move to the downside in price (at least, it is unlikely yo see a massive upside move).
I think we will follow down the red circle (shown by a red arrow) and the blue circle below plays a support level. Then, we move sideways (with some ups and downs) to finally reach the gray large circle. As shown in my previous post (https://www.tradingview.com/chart/BTCUSD/ao2qrqlI-Bitcoin-drops-after-reaching-11-5k-around-July-2019/), every time we approached this Fib circle we had a massive drop. I am not saying we will have a massive drop but it is very important to be cautious around that moment.
On the other hand that green line should be a very strong support. In history, it was a strong support and resistance for several times (even in 2016 and 2017, as well as recent 6 months). Can the market hold that level this time? We do not know (and no one else does either). My guess is we probably hold that level for a couple of weeks and eventually we break it.
BTW, I drew a Fib circle for RSI curve too that has played out very well so far. We will move about the middle of current channel, then we have a upside move to the upper channel and finally goes back down to have a large sell-off. Who knows?!
In my next post, I will show you why I think the market is currently overvalued and we eventually go down to at least retest the $3200.
Let me know what you think?
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