Bitcoin and the break from 61.8%
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 and Gann squares.
You can get all the rules and guidelines to the Fibonacci retracements on our website.
Bitcoin short term update
In our last update we posted,
“Bitcoin held 78.6% at 30,300 and hit the upside target based on the 78.6% rule at 34,500 and we are now look for the completion of the second target based on the 38.2% rule, that is, whenever it fails to make a new low after reacting from 38.2%, the next target becomes 61.8% at 36,500. You will also have to watch 23.6% back to the ATH at 37,300.”
The high the next day was 36,510, for those that have been following the ONE44 Fibonacci rules and guideline, you would have known that the target on a break from 36,500 (C) that is 61.8%, would be 61,8% the other way. This level is 31,820 (D). It also fell short of 23.6% (1) back to the ATH, so this break can lead to new lows for the move and even to 61.8% of the ATH and the 2018 low, this is 28,300.
As always we watch all the retracements regardless of the targets to see just how weak, or strong the market is. Using the 38.2% rule, we know that any market that is going to continue the current trend should hold 38.2%, so without hitting any key support below, taking out 34,400 (E) should mean the break is over for this run and we look to the longer term levels.
It will still have to get a solid close above 37,500 (1) to say a longer term bottom is in.