ONE44 Analytics where the analysis is concise and to the point
This is an update to the post below on 1/29/20
The break from the 78.6% area of 39100 quickly sent the market down to 23.6% of the 2018 low, this was 32800. The rally from this area is now back up to the 78.6% level at 39100. We still feel that a break from this area can take them down to 38.2% of the 2018 low at 27250, however any break that does not get below 38.2% (34900) of the current rally will keep the market extremely positive. As mentioned below our long term target is 44000 and the long term swing point is 27250.
We recommend you use the W.D. Gann chart below based on the Law of Vibration for short term support and resistance as well as swing points and targets.
Long term Bitcoin remains in a strong position and the long term target is still 44000. They held well above the 38.2% retracement at 27250 and have now taken out 33800, this is 38.2% of the break from the all-time high, however they are getting up to an area that can turn the market lower again. By using the ONE44 Fibonacci rules and guidelines we know that a lot of the failures to make new highs end at 78.6%, this level is 39100. The target on a break from this area based on the guidelines, tells us to look for 38.2% (27250) of the whole move, since they have already reacted to 23.6%. The 78.6% level was what sent the market on 1/14/21 at 39500 down to 29000 on 1/22/21. As always we watch all the retracements on all moves and any break from the current high that can not get below 38.2% at 34800 keeps the market extremely positive.
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
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This is our latest video in an ongoing series of how to use the Fibonacci retracements. Even if you do not trade the market covered the rules and guidelines are the same, as we believe the Fibonacci retracements are the underlying structure of all markets.