Bitcoin - what's next? Pitchfork analysis showing playing fieldWhat’s this? —> “Pitchfork” analysis of the playing field for Bitcoin’s next price levels + explanation of historic movements based on that same fork.
We can see that the pitchfork can provide us a bunch of information on the pricing evolution, resistance & support levels and so on. Top that off with a nice Fibonnacci retracement scheme and we can start explaining the movements on the graph.
For the interested: some examples are shown in the graph! Have a look and you can see it providing us a lot more information. Mid November, you can even see one candle stick testing both Fibonnacci resistance and support!
Examples for the very very interested among you:
- The lower pitchfork line shows us a strong line of support in the upward trend channel from Sept – Dec: price even falls through for a second, but the pitchfork does its work and price gets back in.
- We see the forks acting as resistance in the first half of the graph, being easily broken by the price movements: Bitcoin bull on a rampage
- After the top, we see them taking their support role, protecting Bitcoin from ca crazy crash. The bitcoin Bear is currently playing with the 0.382 support line. Know that the graph typically likes the 50% so if something bearish triggers downward movement, we are highly likely to hit that target.
- In the mean time, we see the lower pitchfork working as support, we see that the 50% line was briefly touched upon mid December and we see interesting stuff when we combine the pitchfork with Fibonnacci… A fibonnaccious pitchfork story.
What does this mean for our trades:
--> We actually have to keep very attentive to whatever happens next, it can play out either way.
--> We do see a short term bullish reversal in the penultimate candle stick (the red one, where you can see the smaller part of the candle doing a “low test”, setting the tune for the next (green) upward candle. That one also shows a low test, so we could reasonably expect more upward movement first.
--> Apart from that, look at the support lines in the graph, they can help you in determining whether to buy or sell going forward.
