Rip Roaring Bitcoin and Ethereum
The explosive move higher in Bitcoin took it up through our long term target of 32,100, this will now be our long term swing point. As long as they stay above it the next long term target is 44,100. Just as powerful as this rally has been it can also be as quick on the down moves, so getting back below 32,100 the target will be our last major swing point at 24,500. Before the 44,100 long term target there are two other major Gann squares to watch for resistance at 36,300 and 40,000. These can be used as short term swing points, once they have closed above them. As for support below we will watch all the other major Gann squares marked on the chart below and most importantly to the trend the Fibonacci retracements. The dominant retracements are the ones going back to the December 2018 low. Based on the "38.2% rule" we know that any market must stay above 38.2% to keep the trend intact and this level is 22,900. We also know based on the ONE44 Fibonacci rules/guidelines that an extremely powerful market will only go 23.6% back, so any break back below the 32,100 long term swing point that can only get back to 27,500 is a very strong sign and new highs should follow.
After hesitating for 5 days at the 750.00 long term target, they went right through the next long term target of 911.00 and that makes this the long term swing point. As for an upside target, they still have one more major retracement back to their ATH and this is 1140.00. Before this there is one other major Gann square at 1041.00 to watch for resistance and it can be used as a short term swing point once they can close above it. Back below 911.00, the long term target will be 750.00, in this area is 23.6% back to the March 2020 low and at 726.00 is 38.2% back to the 9/7/20 low.