The end of the year always seems to be a turbulent time for the crypto market. I am paying close attention to BTC as we currently rock and roll through parabolic movement. Here are some of the key fibo levels I am looking at closely. Price will manifest itself as we cross these lines, so what I have on the chart should be approached with caution.
Bitcoin is trading within a very large bull channel on the log scale, and currently we are sitting in the middle of that channel right above the 0.5 fibo. This means upside potential is still massive...absolutely massive. In fact, one day Bitcoin may even be priceless in fiat terms if it decides to breakout of the channel to the upside. That being said, nothing goes up (or to heck) in a straight line, and so at the moment there is also significant downside risk trading far above the trend line noted on the chart.
Parabolic movement will be accompanied by consolidation, that we can be sure of. For this reason I have mapped out the support levels I'm watching. Perhaps these are the levels where we could see consolidation unfold early in 2018 in preparation for the next bull run.
Cheers! -Erik
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Next buying wave ahead?
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Hey traders, watch for a corrective move around 25K where we have confluence with fibo and gann lines. For now I don't expect anything out of the ordinary.
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We are kissing the 0.5 fibo in the weekly log chart (attached is a daily shot for better viewing). I have also redrawn the gann square as the chart was not scaled properly the first time (my bad).
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Got to 6K! Here's what I'm looking at now. We are close to the bottom (if not bottomed) and looking for the market to swing back around. If we breakdown, BTC should have a theoretical bottom no lower than 3K. Below that complete market failure.
I was wondering when you were going to weigh in on things... Thanks for the update, I bought back in a small position down here, I like that $8702 target ;-) do you expect many waves between here and there?
AndyinBrixton
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Yeah, welcome back! I don't know anymore, are we seeing sentiment drift away from BTC. A few of the alts stood up pretty well this downturn. Eth feels strong to me now.
Trader6127
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@AndyinBrixton, fear is present for sure. This could be a good indication of a bottom or "capitulation" in the market. The BTCUSD chart strongly resembles a bubble chart. The good news is that price action is moving very quickly, so we will likely build a base over the next few months and continue higher. The weekly and monthly BTCUSD chart is still very strong upward trend.
As for ETH, I am very bullish on that one ;)
AndyinBrixton
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@agency, admire your faith, feller! Looking forward to following your moves :)