If we look for repeatable patterns we may find Bitcoin selling off a little more and finding support at 40k before it shoots up again.
The last time Bitcoin had a big sell off was in May hitting 30k on 19th May.
From there the market created 4 failed attempts to go higher before creating a new low on 22nd June - effectively running the stops.
It then ranged and contracted for a month before finally shooting higher.
Now, after the similar November sell off, the market has done the same thing - attempting 4 times to go higher and failing and has begun to dive.
If history repeats, we may see the market hit the 40k zone and possibly create a new low.
A fib extension indicated the 1.618 reversal pattern will be a new low (41400).
Here would be the zone where we would look for the shoot higher (41400 - 38800).
Important note: the 618 of the last swing higher (21/06 - 10/11) is at 44k. This could be the first reversal zone - set an alarm and we will judge the price action here!!
The last time Bitcoin had a big sell off was in May hitting 30k on 19th May.
From there the market created 4 failed attempts to go higher before creating a new low on 22nd June - effectively running the stops.
It then ranged and contracted for a month before finally shooting higher.
Now, after the similar November sell off, the market has done the same thing - attempting 4 times to go higher and failing and has begun to dive.
If history repeats, we may see the market hit the 40k zone and possibly create a new low.
A fib extension indicated the 1.618 reversal pattern will be a new low (41400).
Here would be the zone where we would look for the shoot higher (41400 - 38800).
Important note: the 618 of the last swing higher (21/06 - 10/11) is at 44k. This could be the first reversal zone - set an alarm and we will judge the price action here!!
Note
As we said, Bitcoin has declined further down to 43k zone - see blue bubble. This is at the 1.5 extension of the previous swing - see green extensions - testing the low of 4th Dec. This is our first point of consideration for going LONG.The blue horizontal line would be a better point of entry, surpassing the previous low.
The optimal entry would be the 40k zone - see blue and purple lines - this was also the bottom of the last higher low of the bigger swing higher from June 2021 when Bitcoin was at 29k. See Weekly chart.
We are now looking for a long entry - ideally stop should be below the purple line but that is a largish stop at this stage.
Keep an eye out - we are close.....
Note
Weekly...Note
How do we know if we can get down to 40k?One way is to see if the market can retest to a 382 and close gaps.
If it fails to do so we can expect more downside...
Note
Looks like the market is struggling to get back to the 382.We can expect 40k zone
Note
Major support breaks. Is it a false breakout of the trend line or are we heading to nest major support at 28.5K - This zone happens to be the 618 retracement of the whole swing from bottom to top (right now it's at the 50%). Next target of evaluation is at 35k.
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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.