3 min read

Bitcoin, Ethereum downside targets

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


(BTG22) (BCHG) (GBTC) (BAH22)

After closing below the long term swing point of 43,700 on 1/6/22 it never got back above it. Being that the long term swing point is 38.2% of the ATH and the 2018 low, the target based on the ONE44 Fibonacci rules is to look for 61.8% of the same range and this is 28,000. We will now watch the retracements back to the ATH and the high just before it took out the long term swing point at 52,007 to see if there is a short term trend change, even without hitting the long term target of 28,000. For now the long term swing point is 38.2% back to the ATH, this 47,800, it also is a major Gann square and has the 200 day near it at 46,900. The short term swing point is 23.6% of the same move at 42,144.



Ethereum had a better story going by holding the long term swing point of 3030.00 on a closing basis, however the rally from it could only go 23.6% back to the ATH at 3400.00 on 1/12/22. This is why I always say we watch all the retracements on every move regardless of the long term targets to see just how strong, or weak the market is. By only getting 23.6% we know based on the ONE44 Fibonacci rules that "Extremely strong/weak markets will only go back 23.6%. This is typically a runaway market." Like Bitcoin the long term swing point was 38.2% of the ATH and 2018 low and we will now be looking for 61.8% at 1870.00. Here too we will watch retracement to the ATH and the high of the last leg down on 1/13/22 to see if there is any short term trend change.

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.

Here is one, Using the Long Strangle Options Strategy for Opportunity Trades

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