Bitcoin turning multiple levels of previous resistance to suppor
Updated
Trendline Support
Finding the flip from resistance to support is perhaps one of the most important things to look for when charting. In order to help show the trend lines flipping from support to resistance I have segmented them (hey, TV, it would be cool if you could make lines segmentable as a feature) with black to show resistance and green to show support. Late September the downward slopping trend line was broken as resistance and confirmed as support and in early November the rising trendline was likewise broken and price action has consolidated above.
There is also the blue trendline, which is very young as far as bitcoin ins concerned. It is the line that we have followed since early October and when it breaks we should see a relatively minor correction
Fib Channel Support
The anchors show where the three points of the fib channel are set and following the second low we see a lot of predictive ability and I hope to see that predictive ability to continue. The 0.382 to 0.5 level saw a lot of action and so basically I think it is very low probability we will return to that channel. There was a ticket of activity at the 0.618 level and with this current retrace we are confirming that area of price action as support.
I have marked the 1.0 level as an area of minor consolidation, and that is relative to bitcoin and crypto in general. I don't think we are going to stop there anywhere near to the penny, but we should see a topping structure there that leads to a retrace. This retrace may or may not see price action wick into the previous high.
Every fib level on the way up should be an area we would think to see consolidation or a retrace. If you want some idea of the predictive power of these fib cannels see the chart below. The anchors again represent where the fib channel points are set and we see a lot of activity and prediction of action still to this date. Our current rejection is at the 1.272 level
The last extension was 1.618 and we may get that again, so price action could die at that level again. Should it die there there will be way less surprises when it does drop though. My plan for crypto is pretty simple though, for the next couple of years big buys are going to happen at the 20w. If I see us cut through a few fib levels I know a retrace will be due and I can do some lower time frame TA and set some stops. I don't know yet if I will be buying xbt, it will depend on how that is doing against premier alts and the trend in bitcoin dominance. But whenever bitcoin hits a fib level I expect the rest of the market to react.
Finding the flip from resistance to support is perhaps one of the most important things to look for when charting. In order to help show the trend lines flipping from support to resistance I have segmented them (hey, TV, it would be cool if you could make lines segmentable as a feature) with black to show resistance and green to show support. Late September the downward slopping trend line was broken as resistance and confirmed as support and in early November the rising trendline was likewise broken and price action has consolidated above.
There is also the blue trendline, which is very young as far as bitcoin ins concerned. It is the line that we have followed since early October and when it breaks we should see a relatively minor correction
Fib Channel Support
The anchors show where the three points of the fib channel are set and following the second low we see a lot of predictive ability and I hope to see that predictive ability to continue. The 0.382 to 0.5 level saw a lot of action and so basically I think it is very low probability we will return to that channel. There was a ticket of activity at the 0.618 level and with this current retrace we are confirming that area of price action as support.
I have marked the 1.0 level as an area of minor consolidation, and that is relative to bitcoin and crypto in general. I don't think we are going to stop there anywhere near to the penny, but we should see a topping structure there that leads to a retrace. This retrace may or may not see price action wick into the previous high.
Every fib level on the way up should be an area we would think to see consolidation or a retrace. If you want some idea of the predictive power of these fib cannels see the chart below. The anchors again represent where the fib channel points are set and we see a lot of activity and prediction of action still to this date. Our current rejection is at the 1.272 level
The last extension was 1.618 and we may get that again, so price action could die at that level again. Should it die there there will be way less surprises when it does drop though. My plan for crypto is pretty simple though, for the next couple of years big buys are going to happen at the 20w. If I see us cut through a few fib levels I know a retrace will be due and I can do some lower time frame TA and set some stops. I don't know yet if I will be buying xbt, it will depend on how that is doing against premier alts and the trend in bitcoin dominance. But whenever bitcoin hits a fib level I expect the rest of the market to react.
Note
Minor consolidation price reached.Note
Large institutions are getting in now, late comers will pamp everything with FOMO, and then we drop 80-90% again and the strong hands buy the dips.
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