Good evening all, ill be presenting my current thoughts on BTC and the look of things from a technical standpoint.
BTC has been forming a descending triangle for the past 9 months, this is shown from the lower highs and the similar lows of around $6,000, if this is indeed a descending triangle the question is how far does bitcoin fall and how much do people capitulate before finding a bottom? well lets have a look.
First lets take a simple Fibonacci Retracement from the bottom of the 2014/2015 correction BTC last had.
As you can see BTC has retraced past the point of the golden .618 ratio, and the next key fib ratio to be met is the .786 level, this also happens to be inline with a horizontal support of around $4,400 which came from the correction in September of 2017 before the massive spike in price.
Next lets, look at some history with BTC through a log scale chart, and lets see its horizontal lines of support and future resistance. From what i have charted below, you can see there are several levels of support that its possible for BTC to hit, the one which stands out the most to me is the $4,476 level, again due to before with the Fibonacci Retracement .786 ratio i think that level will likely hold. I also think that from the RSI a final capitulation will bring BTC into oversold conditions.
Lastly, lets look at a trendline which has held since 2012, shown in purple this trendline suggests that BTC could hold around the $4,800 mark. Maybe it will temporarily pierce the trendline and a bullwick scenario could occur?
So, BTC is looking ultimately bearish, short to medium term, from a chart standpoint, but do not panic. Long term is looking bullish.
I appreciate you reading my current thoughts on BTC, let me know your ideas and if you agree or disagree, also be sure to upvote, it is highly appreciated.
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Disclaimer: I am not a financial advisor and any of my content should not be taken as financial advice. The information and content provided is purely my own thoughts and intended for informational and entertainment purposes only. This is not investment advice. If you want to invest you should consider consulting with a professional beforehand.
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