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
The move to new all-time highs was set up by the fact that they held 38.2% back to the 2018 low on 3/1/21, this level was 1306.00, it was also a major Gann square. The 38.2% rule tells us that any market that holds 38.2% should go on to new highs for the move to keep the trend intact. This was accomplished on 4/2/21, before then the rally from 1306.00 fell short of a new high on 3/15/21, the break from here went right to 61.8% of that high and the 1306.00 low. By holding this level (1550.00) it kept the idea of new highs alive. After the new highs on 4/6/21 the setback was only able to go 23.6% back to the 1306.00 low, this was also a major Gann square. The current rally from there has now hit our long term target of 2291.00. This is now our swing point. A break from here can take it back to the area of 1790.00 and 1761.00, the first is 23.6% back to the 2018 low and the second is a major Gann square. For reference the long term swing point has now moved up to 1450.00. You can also watch the other major Gann squares at 2106.00 and 1930.00 for support.
With a solid close above 2291.00 the next long term target will be 2940.00, before then you can look for resistance at the major Gann squares of 2509.00, 2710.00 and 2912.00, each of these will become the swing point once they get a solid close above them.
When Ethereum was hitting 38.2% back to the 2018 low on 3/1/21, Bitcoin held 23.6% of the 2018 low, it traded below it, but never closed below it, keeping this market extremely positive. From there they made a new ATH and the break from it, also took it to 61.8% of the 3/1/21 low on 3/25/21. The rally from there failed to make a new high, however the setback on 4/7/21 held 38.2% back to the 3/25/21 low. Bitcoin has now made a new ATH and our long term target remains up at 67700. You can use the 62470 major Gann square as the swing point for now. On a bigger break from new highs look for 50100, this is 23.2% back to the 2018 low, the long term swing point has now moved up to 41600. Use the other major Gann square before then for support, these are 37700 and 52900.
We will update the next long term target once 67700 has been hit.
The second set of Charts below are natural support and resistance levels that are based on W.D.Gann's "Law of Vibration". Each level can be used as support and then resistance once taken out and the reverse when starting as resistance.
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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.