QUICK, EVERYONE PANIC - BITCOIN! (BTC)
Updated
Hello Friends, Traders, Everyone!
For those of you who have taken a peek at my analysis on XAUUSD, you know how fond I am of this new (experimental) method of TA which uses a combination of Fib tools.
I thought, that this action on bitcoin would be a perfect place to see what kind of insight it can give us into crypto.
I was shocked at what I discovered
As you can see on the Weekly chart, Bitcoin has been on a parabolic run up until this week. From my last analysis - we hit our first target 127% / $9100 where we had a clear double top caused by the 50% speed fan resistance.
This caused traders to lose faith in the rally, which weakened Bitcoin right before an encounter with the first Fib Arc we have touched since 19 NOV 2018. This Arc just so happens to be the 1.618, the strongest of ALL the coefficients found in the Fibonacci equation. All of this while BTC also encountered the .5 time zone. That, is a lot going on.
Now, moving on to my favorite time frame, the H12. I have outlined the long trade that I will be taking. I can't stress how important a stop loss is here. I am tempted to short because we broke critical fib channel support, but there are also things telling me to go long. I will take this long with a small percentage of profits made from closing my $5150 long. As always with my strategy, stop loss will be the 100% retracement, as a break of that causes the retracement analysis to become invalid and we will have to look at a larger, more senior impulse wave, to find out who's in charge.
I won't drag the text portion of this analysis out too long. I don't have too much time today, busy busy traders :)
Previous Analysis:
For those of you who have taken a peek at my analysis on XAUUSD, you know how fond I am of this new (experimental) method of TA which uses a combination of Fib tools.
I thought, that this action on bitcoin would be a perfect place to see what kind of insight it can give us into crypto.
I was shocked at what I discovered
As you can see on the Weekly chart, Bitcoin has been on a parabolic run up until this week. From my last analysis - we hit our first target 127% / $9100 where we had a clear double top caused by the 50% speed fan resistance.
This caused traders to lose faith in the rally, which weakened Bitcoin right before an encounter with the first Fib Arc we have touched since 19 NOV 2018. This Arc just so happens to be the 1.618, the strongest of ALL the coefficients found in the Fibonacci equation. All of this while BTC also encountered the .5 time zone. That, is a lot going on.
Now, moving on to my favorite time frame, the H12. I have outlined the long trade that I will be taking. I can't stress how important a stop loss is here. I am tempted to short because we broke critical fib channel support, but there are also things telling me to go long. I will take this long with a small percentage of profits made from closing my $5150 long. As always with my strategy, stop loss will be the 100% retracement, as a break of that causes the retracement analysis to become invalid and we will have to look at a larger, more senior impulse wave, to find out who's in charge.
I won't drag the text portion of this analysis out too long. I don't have too much time today, busy busy traders :)
Previous Analysis:
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I would like to add, I don't have time to verify whether or not this is true, but there is a rumor circulating alledging that this dump was manufactured by a single whale/small group that dumped 25k BTC on coinbase and bought it back 15m cheaper shortly thereafter.Trade active
Some of my orders did fill shortly after I posted this idea.It's just a weird range on bitcoin right now.
This is strictly a technical trade. I am risking about 15% of profits from the run up...and I'll be ok with losing that if it comes to it.
Note
Little bonus analysis within the orderblock for those of you guys who like harmonics :)Note
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MAJOR POTENTIAL VOLATILITY INC BE CAREFUL TRADERS
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