I've been waiting to talk about this, and did not want to let the cat out of the bag for fear that someone would make an impulsive move from my rag-tag technical analysis and possibly lose money. However, it's safe to talk about this now that we see the mini-pump that just took place. I'll break it down for you, and talk about the next ring of this new magical fib circle set that I've been eyeing for the past week!
The new magical all-powerful fib circle set that I have constructed is based on the range from the micro low which occurred on March 16th 2020, and ends on the peak at April 7th 2020. This is the set in light blue on the chart. The pump happened right on target as soon as the price line hit Light Blue 3.618 fib circle ring. With the stochastic playing around in the middle area, it was still uncertain whether or not BTC would break to the up side, or the down side. As we can see, the 4-hour candle that printed exactly on the crossing of the line was a big fat green candle indeed, posting a new higher-high compared to the previous stochastic peak that hit on April 16th with a slight decline happening after crossing the Dark Green 3.618 fib circle boundary.
Take note that the previous peaks numbered 1 and 2 on the chart showed Bitcoin price experiencing a rejection on the fat red trend line which has been a resistance boundary for quite some time. But after the price line finally crossed the resistance, it became support. This is common, and indicative of a reversal on the micro level. The crossing of that resistance brought us to a micro higher-high as BTC hit the Dark Green 3.618 as you see on my chart. However, it did not eclipse the previous high at point 1, and only surpassed resistance point number 2. This is what clouded my ability to make a strong determination of what would happen when we arrived at the Light Blue 3.618.
While this mini-breakout is certainly exciting, I'm not getting my hopes up too high because we are still trading within the parallel trading zone that has contained ALL of the price movement since the peak on June 26th, 2019. This is still a move happening within the overall bearish trading zone that has held BTC captive dating back to the summer of 2019. While the stochastic has peaked on the 4-hour chart, there is still a possibility that we can get a "double-hump camel" top that we have seen in the past. But what I will be looking for is a strong move that puts Bitcoin back above the upper boundary of the parallel trading zone.
So the question remains, what is possible in the most micro-bullish scenario? My eyes will be on the crossing of the powerful Dark Green 4.236 looming up ahead. If the momentum continues, it is possible to reach a price of 9170. Should that happen, the truth will be told when we finally see if a big move takes place that props BTC above the top of the parallel trading channel and STAYS. But we also have the medium-blue 4.618 that could possibly spark a pivot in either direction before we hit the Dark Green 4.236. If you pop out to the 1-day chart, you'll see that the stochastic is on the rise in the neutral zone, where it appears to be headed to the 80% boundary line. That tells me this current move could possibly be continued until the stochastic peak happens. But the KEY will be, will it post a higher high at the 1-day stochastic peak?
Once we see the action that is printed over the next week, we'll have the ability to create a new fib circle set that is based on a new range beginning with the same micro low on March 16th 2020, and ending at whatever new higher high takes place, IF it takes place that way. That will give us some serious clues as to where the next pivot points will occur.
What has me flummoxed is the fact that the stock market continues to pump higher during a time that the economy appears to be crashing as a result of the COVID19 lock down. It doesn't make any sense. But when considering the fact that the crypto market has been reflecting the same movement of the stock market since the virus apocalypse has gone on, I do think that the stock market will dictate the direction of the next major movement we have with Bitcoin. Anything can happen, but my gut feeling is that the chickens WILL come home to roost one day with the senseless money printing by the Feds and the massive size of the seemingly never-ending bailouts going on.
I also believe that we better be paying attention to the oil market while we wait, AND the residential/commercial real estate bubble that will likely be bursting. Both of these will definitely have an impact on the economy, the stock market, AND the crypto market. So it's best to be VERY CAREFUL until we know how all of this madness shakes out. And remember, DON'T listen to me, because I'm not your financial wizard. I just call the action as I see it. Be careful out there!
Carlton Flowers
The CryptoPro
The new magical all-powerful fib circle set that I have constructed is based on the range from the micro low which occurred on March 16th 2020, and ends on the peak at April 7th 2020. This is the set in light blue on the chart. The pump happened right on target as soon as the price line hit Light Blue 3.618 fib circle ring. With the stochastic playing around in the middle area, it was still uncertain whether or not BTC would break to the up side, or the down side. As we can see, the 4-hour candle that printed exactly on the crossing of the line was a big fat green candle indeed, posting a new higher-high compared to the previous stochastic peak that hit on April 16th with a slight decline happening after crossing the Dark Green 3.618 fib circle boundary.
Take note that the previous peaks numbered 1 and 2 on the chart showed Bitcoin price experiencing a rejection on the fat red trend line which has been a resistance boundary for quite some time. But after the price line finally crossed the resistance, it became support. This is common, and indicative of a reversal on the micro level. The crossing of that resistance brought us to a micro higher-high as BTC hit the Dark Green 3.618 as you see on my chart. However, it did not eclipse the previous high at point 1, and only surpassed resistance point number 2. This is what clouded my ability to make a strong determination of what would happen when we arrived at the Light Blue 3.618.
While this mini-breakout is certainly exciting, I'm not getting my hopes up too high because we are still trading within the parallel trading zone that has contained ALL of the price movement since the peak on June 26th, 2019. This is still a move happening within the overall bearish trading zone that has held BTC captive dating back to the summer of 2019. While the stochastic has peaked on the 4-hour chart, there is still a possibility that we can get a "double-hump camel" top that we have seen in the past. But what I will be looking for is a strong move that puts Bitcoin back above the upper boundary of the parallel trading zone.
So the question remains, what is possible in the most micro-bullish scenario? My eyes will be on the crossing of the powerful Dark Green 4.236 looming up ahead. If the momentum continues, it is possible to reach a price of 9170. Should that happen, the truth will be told when we finally see if a big move takes place that props BTC above the top of the parallel trading channel and STAYS. But we also have the medium-blue 4.618 that could possibly spark a pivot in either direction before we hit the Dark Green 4.236. If you pop out to the 1-day chart, you'll see that the stochastic is on the rise in the neutral zone, where it appears to be headed to the 80% boundary line. That tells me this current move could possibly be continued until the stochastic peak happens. But the KEY will be, will it post a higher high at the 1-day stochastic peak?
Once we see the action that is printed over the next week, we'll have the ability to create a new fib circle set that is based on a new range beginning with the same micro low on March 16th 2020, and ending at whatever new higher high takes place, IF it takes place that way. That will give us some serious clues as to where the next pivot points will occur.
What has me flummoxed is the fact that the stock market continues to pump higher during a time that the economy appears to be crashing as a result of the COVID19 lock down. It doesn't make any sense. But when considering the fact that the crypto market has been reflecting the same movement of the stock market since the virus apocalypse has gone on, I do think that the stock market will dictate the direction of the next major movement we have with Bitcoin. Anything can happen, but my gut feeling is that the chickens WILL come home to roost one day with the senseless money printing by the Feds and the massive size of the seemingly never-ending bailouts going on.
I also believe that we better be paying attention to the oil market while we wait, AND the residential/commercial real estate bubble that will likely be bursting. Both of these will definitely have an impact on the economy, the stock market, AND the crypto market. So it's best to be VERY CAREFUL until we know how all of this madness shakes out. And remember, DON'T listen to me, because I'm not your financial wizard. I just call the action as I see it. Be careful out there!
Carlton Flowers
The CryptoPro
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.
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.