BitcoinLong
Crypto Bottoms: First Strong Bounce BTCUSD
Updated
There was no further significant sell-off after the Nov. 25 bottom and we currently have what appears to be a double bottom.
Swing 1 was an initial bounce off the lows putting a halt to the bearish trend. Much more importantly, we are currently in swing 2 which put in a double bottom and has exceeded the highs of swing 1 in a 20%+ move. This puts "the bottom is in" scenario back into the spotlight. This sort of bounce, shortly followed through by another bounce even higher has not happened in a long time.
I'm looking for additional confirmation by price reaching the $4550+ zone without much struggle. That target is projected by the doji midpoint circled (50% fib level goes here). All other fib levels are of secondary importance.
Swing 1 was an initial bounce off the lows putting a halt to the bearish trend. Much more importantly, we are currently in swing 2 which put in a double bottom and has exceeded the highs of swing 1 in a 20%+ move. This puts "the bottom is in" scenario back into the spotlight. This sort of bounce, shortly followed through by another bounce even higher has not happened in a long time.
I'm looking for additional confirmation by price reaching the $4550+ zone without much struggle. That target is projected by the doji midpoint circled (50% fib level goes here). All other fib levels are of secondary importance.
Note
Zooming in on Swing 1, we see a midpoint projection here which completed very quickly and accurately, suggesting the fib setup is valid. This same fib setup projects a 61.8% extension which also points to a $4500 zone as the next target.Note
Any further pullback beyond here and our chances of hitting 4500 quickly diminish. Nice midpoint here does indeed suggest the pullback is over. Patience...Note
We remain on an absolutely critical support level which is holding... for now. If we break steady below 3900 the entire rally since Nov. 25 risks becoming nothing more than a bear market rally.Note
The critical 3900 zone has held and we have a new shorter term midpoint targeting the 4250 zone. Our longer term bullish target of besting the recent 4400 highs and testing 4550 (the original idea posted here) remains valid.Note
"shorter term midpoint targeting the 4280 zone" (not 4250)Note
While Bitstamp remained just shy of reaching the 4280 zone, this up-cycle completed on other exchanges. Here it is on Coinbase, where the target of 4272 was reached. Avoiding any major pullbacks, we should see price continue to reach for the original 4500+ zoneNote
The critical 3900 zone failed to hold today, making the 4500 target very unlikely at this point. It's looking like the rally started on Nov. 25 was just a bear market rally. Too much uncertainty right now but I'm watching this bearish midpoint of 4022 suggesting an initial downside target of 3635.Note
Two failures now to get above the weekly pivot - a further bearish omenmql5.com/en/charts/9452222/btcusd-m30-ava-trade-ltd
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.