BTC may not have finished its bull run, starting March 2020. Using Fib extensions we can see that BTC hasn't quite hit the magical 4.23 fib number.
If thats true, we can see we have completed the A and B legs of a 4th wave correction.
This may be the end of a C wave, of an ABC correction.
- Using an inverse of fib extension from the 69k high, the target for the end of the C wave is at 41k.
- We are at a long term trend support (white line)
- We are at the 1.618 RED fib support
- Lower volume may indicate a pattern confirmation.
I expect a bounce to 57K.
- Red 2.618 resistance is here, and orange 1.618 is too. These are crucial fib numbers.
Once this occurs, the danger of a head and shoulder reversal pattern presents itself. If we cannot break through 57K and get rejected, this means the C correction is not over and we may see pain all the way to 20k or even 15k. If so, I hope you have money standing by!
Trade closed: target reached:
We didn't get the bounce to $57k like I hoped. However since we could not break back above support, we did revisit $20k. The current BTC price was not unexpected.