Bitcoin Has Hit Major Resistance
BITCOIN
This week's rally is up into the next key level of resistance at 28,000 and 28,891, the first is 23.6% back to the ATH and 38.2% back to the 3/28/22 high and the second is a major Gann square. Use 28,000 as the swing point for the week. A setback from here can take it one major Gann square lower at 24,815 (when using the major Gann squares) and 38.2% of the recent rally at 23.475 (using Fibonacci retracements), this is the short term trend swing point. Above 28,891 the target area is 38.2% back to the ATH at 35,850 (long term swing point) and the 36,300 major Gann square.
You can learn more about the Fibonacci retracement and how to use them with the ONE44 rules and guidelines on our YouTube channel, or HERE.
The Chart below also has natural support and resistance levels that are based on W.D. Gann's "Law of Vibration". They are marked by the yellow horizontal lines.
Mr Gann viewed stocks as live electrons, atoms, and molecules which hold persistently to their own individuality in response to the fundamental Law of Vibration. Science teaches 'that an original impulse of any kind finally resolves itself into periodic or rhythmical motion, also just as the pendulum returns again in its swing, just as the moon returns in its orbit, just as the advancing year ever brings the rise or spring, so do the properties of the elements periodically recur as the weight of the atoms rises'.
Each level can be used as support and then resistance once taken out and the reverse when starting as resistance. These levels will be good until the end of each contract.
- If you like this type of analysis and trade the Grain's take a look at our “Weekly Grain update” Premium Membership on our website.
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.
