BTCUSD Buy Back Zones
Updated
BTCUSD is reaching a bottom.
Key points are the 0.5 retracement of the Wave 3 in the EW Supercycle (Mid July to Mid December), and the 1.272 fibonacci extension of wave A in the corrective Wave, starting mid-december.
Most people think 1.386 is a fibonacci extension, which is a common misconception. 1.272 is calculated from the Square root of the fib extension ratio.
Bitcoin has just dropped below the lower channels created between Wave A and Wave B's terminal points, and has shown previously (e.g. 11th January) strength when approaching the downwards half of the channel - it seems to be avoiding dropping further into that downward channel now, at those key fibonacci extension and retracement levels (which draw a "double wall" when 2 major levels coincide at virtually the same price level).
Demand for cryptocurrency's has been huge, but due to exchanges temporarily not allowing new registrations, there has not been an adequate reflection of this demand in buying pressure.
I think when new registratisn re-open, we will see a surge in buying, and we'll begin wave 5 of the EW supercycle for BTCUSD - the "public adoption phase".
Exciting times ahead!
Overall, my original 29th December prediction was the most accurate - what I have noticed and am now convinced of, is that bull runs occur in ~61.8 day cycles (the golden ratio).
Still, price has now crept inside that green box I've included in my previous few analyzes, just a little lower than I anticipated recently, although I had originally suspected where we are now would be the bottom.
See below for this cycle drawn over the 1D BTCUSD chart.
Key points are the 0.5 retracement of the Wave 3 in the EW Supercycle (Mid July to Mid December), and the 1.272 fibonacci extension of wave A in the corrective Wave, starting mid-december.
Most people think 1.386 is a fibonacci extension, which is a common misconception. 1.272 is calculated from the Square root of the fib extension ratio.
Bitcoin has just dropped below the lower channels created between Wave A and Wave B's terminal points, and has shown previously (e.g. 11th January) strength when approaching the downwards half of the channel - it seems to be avoiding dropping further into that downward channel now, at those key fibonacci extension and retracement levels (which draw a "double wall" when 2 major levels coincide at virtually the same price level).
Demand for cryptocurrency's has been huge, but due to exchanges temporarily not allowing new registrations, there has not been an adequate reflection of this demand in buying pressure.
I think when new registratisn re-open, we will see a surge in buying, and we'll begin wave 5 of the EW supercycle for BTCUSD - the "public adoption phase".
Exciting times ahead!
Overall, my original 29th December prediction was the most accurate - what I have noticed and am now convinced of, is that bull runs occur in ~61.8 day cycles (the golden ratio).
Still, price has now crept inside that green box I've included in my previous few analyzes, just a little lower than I anticipated recently, although I had originally suspected where we are now would be the bottom.
See below for this cycle drawn over the 1D BTCUSD chart.
Note
The fact this correction appears it may end before the 0.236 trend-based fibonacci time extension, is a sign of the bullishness of the market on larger timeframes - and a crystal ball into how bullish Wave 5 of the upcoming EW supercycle will be!Our charts have 2 axes - time and price. Most people look exclusively at price, forgetting how valuable analyzing time and cycles can be.
Notice on this below graph how the 0.236 time extensio of the supercycle Wave 3 coincides almost exactly with the 61.8 day correction cycle?
If we saw such a shallow correction in price (0.236), it would be obviously bullish - the same follows for time. If this is the end of the correction, the supercycle Wave 5 will be truly large indeed!
Note
Above image shows where I derived my fibonacci levels, below image shows the current price clearer:
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.