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.
This is an ongoing series of updates for Bitcoin posted on Barchart.com and the ONE44 Analytics website on how to use the Fibonacci retracements.
In our last update Bitcoin had just hit 61.8% at 36,500 (C), using the ONE44 Fibonacci rules and guidelines we knew to look for 61.8% the other way. This is 31,900 (D). They are getting close to this target, but first we will look at what it has done since hitting 36,500.
The initial break from 36,500 took out 38.2% of the rally from 30,300 (A), telling us this short term run was over and to also look for 61.8% (D) for another reason. That break failed to get to 61.8% and the next rally took it to 78.6% (1), again using the ONE44 Fibonacci rules and guidelines we should have been looking for a break to 78.6% the other way, it did this at 33,500 (2). Using the same rule the target from there would have been 78.6% back up, however it failed to get above 61.8% (3) and is now within $200 of the 61.8% target (D). On a rally from this area look for 61.8% back up at 34,800 (4). As always we watch all the retracements on any move and only getting up to 38.2% at 33,800 keeps the short term trend negative.
In the bigger picture, they are still trading between two major retracements. The rally up to 36,500 fell short of 23.6% (37,500) back to the ATH and the target from that failure would be new lows for the move. Provided they did go for new lows, look for 61.8% (28,300) of the ATH and the 2018 low.