LewisGlasgow
Long

Bitcoin - Market Correction

BITSTAMP:BTCUSD   Bitcoin / Dollar
I feel there is a need for another insightful post in regards to BTC/USD, today's analysis is on the 4h timeframe.

This is following up from my post 2 months ago where I predicted the next corrective phase to begin at $20,000, from here we experienced a market decline of 50% before price settled.



The magnitude of the correction was amplified as the entire market capitalisation dropped from $830 billion to $350 billion, which is over a 50% decline market-wide.

We've been looking for low levels to buy bitcoin             throughout January, although having two successful long positions this month price is yet to find the bottom.

The current bullish bat formation looks excellent, the D point holds price at a 64% correction, which is substantial given this happened within a 6 week period.

The measurements for a valid bat pattern are detailed below.
B: 0.382 - 0.50
C: 0.382 - 0.886
D: 1.618 - 2.618
Final X to D: 0.886

The ratio alignment for this setup is excellent, the D point also aligns with a trend based fib-extension from A, B, C at 1.414, this is not shown on the chart.

Below is a simple overview on the daily chart .

snapshot


We're still in a good area of support which of course aligns with the bullish bat , to me this is a reversal zone worth watching.

To add, I'm using a logarithmic scale instead of the standard linear scale.

Keep this setup on your watch list :)
Kommentar: A quick update for everyone on BTC, taking a look at the 4h chart, price seems to be pulling back to the 0.382 retracement in this extreme sell-off.

snapshot


Following the first decline from $20k price returned back to $16,400 at the 0.618 retracement, followed by a re-test at $17,200.

Since price dropped below $10k it has been causing a market-wide panic, you can see price is consistently pulling back to the 0.382 retracement followed by a further decline.

Whenever you are in a strong trend, the 0.382 reversal is a good indication that price will continue trending until the support or resistance level is broken and we experience a larger pullback.

What's even more interesting is the average decline in each stage throughout this correction is around 40%.

snapshot
Kommentar: Price has now hit the 0.382 retracement level around $7300, this was accompanied by increasing buying volume as shown.

snapshot


Pay attention to $6k going forward as a buying support, I'm expecting price to now level out going forward and provide clear direction.
Kommentar: Support established at $6k, something to add to support previous analysis.

snapshot
Kommentar: Be aware of price stalling at $7,900 where the next resistance level is, this is where the move is likely to slow down, we'll see another decline towards $7k shortly.

snapshot


From there we will see the market level out, I don't see any reason for price to drop another 75% for those indicating a $2k buy level... But again, in this market, anything is possible ;)
Kommentar: My current view for BTC on the 15m chart.

snapshot
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@LewisGlasgow hi, total hit the spot that you have foreseen, $7700-7800. Now what’s nice? A bounce to $8600 or $9200?
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Coke_Coke Coke_Coke
I mean today
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Coke_Coke Coke_Coke
N I mean what’s next?
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I feel it will drop further until he end of the month. SUB 5000USD. BTC is looking like a dirty investment to the public now. I took profits at 12k and held in fiat. I'm buying back in in a few months. Not touching it right now. Far more interesting products like Elastos and Zeepin even some Fintech coins. BTC is a mothership with a 10 mile turning radius. I'm after speed boats.
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Why you are still using this magic patterns??? this is like a religion! I have seen these harmonic patterns every day since February, andit is never correct, the price continue descending, and you continue drawing another pattern, is ridiculous.
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LewisGlasgow PRO EnriquePiatti
@EnriquePiatti, I guess you missed the last magic pattern that hit take profit 1 at 0.382.



Followed by the cypher which achieved take profit two, which can be found in the idea update.

Good day to you Enrique.
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EnriquePiatti PRO LewisGlasgow
@LewisGlasgow, when I click "Play button" there I can see the price goes up,but without touching "D" so how can we know when to enter? even more, the price touches D much later and the prices does not go up.
And this from Jan17, I've seen multiple harmonic patterns failing since 1st Feb.
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hmmm chart looks almost exactly like mine
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LewisGlasgow PRO Marcell7855
@Marcell7855, well, that's a good sign :)
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Marcell7855 LewisGlasgow
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