See why these are the targets and what it will have to take out to change it.
ONE44 Analytics where the analysis is concise and to the point
Our goal is to not only give you actionable information, but to help you understand why we think this is happening based on pure price analysis with Fibonacci retracements, that we believe are the underlying structure of all markets and Gann squares.
For the ONE44 Fibonacci rules and guidelines to help with this article, go here.
Charts are courtesy of Barchart.com
This is an update to the post "Cryptocurrencies all hit key levels above" 2/12/22
The high on 2/10/22 failed to get up to 38.2% keeping the long term trend negative, it also came very close to the 200 day average. A break from 38.2% should send it to new lows for the move, it already failed to hold 38.2% of the rally at 41,000 and there is one area to watch for a bottom if they fail to make a new low and that is 78.6% at 36,050. Following the ONE44 Fibonacci rules, not making a new low after coming off of 38.2% should send it to 61.8% the other way. For now we are still looking for new lows and the 61.8% level of the ATH and 2018 low, this is 28,000.
The high on 2/9/22 hit and closed above 38.2% at 3190.00, that day also hit the 200 day average. The next day was right back below it and the break took it to 38.2% of the rally at 2865.00. This looked like a good sign after hitting a much bigger retracement above, however the next rally could only go back to test the long term swing point of 38.2%. The break from it has now taken out 2865.00 and like Bitcoin we are looking for new lows for the move and watching 78.6% to see if they fail to make that new low. The target after new lows is 61.8% of the ATH and the 2020 low, this is 1900.00. The target on a failure to make a new low is 61.8% (3830.00), since they already reacted to 38.2% (3190.00).
Sign up for our Free newsletter here.
If you are looking for option plays to go with the ONE44 levels, we highly recommend going to the Barchart webinar library where John Rowland has plenty of information on Option strategies.
FULL RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Commission Rule 4.41(b)(1)(I) hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. Past performance is not necessarily indicative of future results.