BTCUSD – Why Is 6800 So Special To Bitcoin?
Updated
Good day, my friends!
Bitcoin ended its Wave A correction at 6847 on Bitfinex with perfection earlier (of Elliott Wave's ABC correction). I considered it perfect because it ended above the 6800 support level and not below it. This is a positive development for Bitcoin and I will explain it later.
Despite gaining selloff momentum from 8506, the bears had failed miserably to break below the 6800 price level. If you doubt the bears’ commitment, let me show you exactly what happened with this chart below.
As you can see, the bears launched four consecutive attacks on the 6800 support level throughout a 48-hour period. The reason they failed is because each of those attacks were fiercely countered by the bulls. Now the question is, why are the bulls protecting the 6800 price level with such strong commitment or at all?
What is so special about 6800?
It so happens that 6800 falls on the Fibonacci golden ratio of 61.8% of the previous rally. If you have learned about Fibonacci retracement, then you would know that this level is absolutely critical to Bitcoin because if we are to see a bullish continuation, then this level MUST NOT be breached at all costs!
Let me show you another chart. This is one of my favorites. It is a long term forecast of Bitcoin that covers a period of 3 months from July 1 till September 30.
I charted this back in July 1 and that was before Bitcoin even got to 6800 or 8000. As you can see, the price back then was only at 6355 after recovering from the 5800 fall. Also in this chart you will find three targets - VST#1, ST#2 and MT#3. Yes, I had long predicted that Bitcoin would get to 6800, followed by 8000 and finally 10,000 over a period of 3 months. So far, 2 out of 3 targets have been achieved.
Before you begin thinking that I am writing all this just to brag, let me stop you there because I am not. I am still in the process of explaining to you why 6800 is so important. Now let me show you the same chart but with the actual trend up until today.
In reality, price went to 6800 and then 8000. In fact, it even got above 8000 but eventually the bulls failed to sustain the breakout and price came back down to 6800 just as predicted. Now why is it crucial for Bitcoin to pullback to 6800? If you look at the chart again, you would see that I had predicted the actual breakout of the triangle (TTL on the magenta trend line) would likeliest take place at the 6800 level.
Again, why 6800? Why not 7800 or 5800? It is because when Bitcoin finally breaks out of this huge triangle, it could be the end of the bear season. However, this would also be Bitcoin's last chance to break above the triangle, which explains why it needs all the leg room it can afford to recharge its momentum before making that big leap -- and 6800 happens to be the lowest Bitcoin can go without breaking its current bullish trend. For if it fails again, the bears will seize the opportunity and initiate a reverse breakout that could end in capitulation.
Do you see now why 6800 is so special and why the bulls are doing everything they can to protect this sacred level?
Alright then, let’s move on to today’s forecast. As of current, Bitcoin is on a short term rebound to fulfill Wave B which ends near 7400 but it won’t get there on a straight line. If Bitcoin continues to trend according to my short term forecast, then price will likely reach 7286 (our first target) and 7394 (our second target) in two attempts.
That's all for today. Please LIKE this post if you enjoyed reading it. Your support matters as it encourages me to post more new content here.
On a side note, my Bitcoin Q4 (Fourth Quarter) Forecast will be released in September and is available for pre-order now. Please send me a direct message for details.
Good luck and happy trading!
Gifts & Support:
BCH: qznk2nnuppn0xszpmx0ruvfzlh7z5ux8r527d05k3f
Bitcoin ended its Wave A correction at 6847 on Bitfinex with perfection earlier (of Elliott Wave's ABC correction). I considered it perfect because it ended above the 6800 support level and not below it. This is a positive development for Bitcoin and I will explain it later.
Despite gaining selloff momentum from 8506, the bears had failed miserably to break below the 6800 price level. If you doubt the bears’ commitment, let me show you exactly what happened with this chart below.
As you can see, the bears launched four consecutive attacks on the 6800 support level throughout a 48-hour period. The reason they failed is because each of those attacks were fiercely countered by the bulls. Now the question is, why are the bulls protecting the 6800 price level with such strong commitment or at all?
What is so special about 6800?
It so happens that 6800 falls on the Fibonacci golden ratio of 61.8% of the previous rally. If you have learned about Fibonacci retracement, then you would know that this level is absolutely critical to Bitcoin because if we are to see a bullish continuation, then this level MUST NOT be breached at all costs!
Let me show you another chart. This is one of my favorites. It is a long term forecast of Bitcoin that covers a period of 3 months from July 1 till September 30.
I charted this back in July 1 and that was before Bitcoin even got to 6800 or 8000. As you can see, the price back then was only at 6355 after recovering from the 5800 fall. Also in this chart you will find three targets - VST#1, ST#2 and MT#3. Yes, I had long predicted that Bitcoin would get to 6800, followed by 8000 and finally 10,000 over a period of 3 months. So far, 2 out of 3 targets have been achieved.
Before you begin thinking that I am writing all this just to brag, let me stop you there because I am not. I am still in the process of explaining to you why 6800 is so important. Now let me show you the same chart but with the actual trend up until today.
In reality, price went to 6800 and then 8000. In fact, it even got above 8000 but eventually the bulls failed to sustain the breakout and price came back down to 6800 just as predicted. Now why is it crucial for Bitcoin to pullback to 6800? If you look at the chart again, you would see that I had predicted the actual breakout of the triangle (TTL on the magenta trend line) would likeliest take place at the 6800 level.
Again, why 6800? Why not 7800 or 5800? It is because when Bitcoin finally breaks out of this huge triangle, it could be the end of the bear season. However, this would also be Bitcoin's last chance to break above the triangle, which explains why it needs all the leg room it can afford to recharge its momentum before making that big leap -- and 6800 happens to be the lowest Bitcoin can go without breaking its current bullish trend. For if it fails again, the bears will seize the opportunity and initiate a reverse breakout that could end in capitulation.
Do you see now why 6800 is so special and why the bulls are doing everything they can to protect this sacred level?
Alright then, let’s move on to today’s forecast. As of current, Bitcoin is on a short term rebound to fulfill Wave B which ends near 7400 but it won’t get there on a straight line. If Bitcoin continues to trend according to my short term forecast, then price will likely reach 7286 (our first target) and 7394 (our second target) in two attempts.
That's all for today. Please LIKE this post if you enjoyed reading it. Your support matters as it encourages me to post more new content here.
On a side note, my Bitcoin Q4 (Fourth Quarter) Forecast will be released in September and is available for pre-order now. Please send me a direct message for details.
Good luck and happy trading!
Gifts & Support:
BCH: qznk2nnuppn0xszpmx0ruvfzlh7z5ux8r527d05k3f
Note
My fellow traders, what we have just witnessed is a massive selloff following the SEC announcement to delay their ETF decision until September 30th. Now that price has breached 6800, is this the end of Bitcoin? Are we going down for good?In my post, I said that if price were to breach 6800, the bears could trigger capitulation. So are we there yet? The answer is no. While the 6800 golden ratio is preferred, it is not the last. In fact, price has just bounced off the last golden ratio around 7340.
What does it mean? It means that we still have buyers (or bulls, whichever way you want to call them) ready to buy at this last Fibonacci golden ratio. In fact, there are even more buyers ready to jump in at the 6000 support level.
Despite my short term forecast to 7400 has been invalidated, my long term quarterly chart is still very much in play. As long as price does not close below the triangle, Bitcoin can still recover and play out the remaining target of my forecast just as predicted. Nevertheless, price is expected to retest the bottom at 7340 again so we will need to closely monitor the current market and see how this "systematic selloff" plays out before getting back in or adding more chips to the table.
At this time, it is normal for uneducated traders to troll bullish bias posts and show off their unwitting arrogance. For the rest of us, we will dismiss them and remain level-headed. Good luck!
Note
Correction. The last golden ratio is at 6340, not 7340. I apologize for the typo.Note
How is everyone holding? I have an analysis update for Bitcoin. Happy trading!
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