Bear Case:
On my charts 41600 seems to be a huge support with wicks touching it but no solid candles below since December 18
My fib support below that is 40354 (.786)
The .618 is 37014 which according to fib theory is a retrace magnet. I have been highly anticipating a pull back to 38-36 area since we broke 40k, though the accumulation around 40-42 has been very strong, which has been a signal that this area might be a new local low.
A pull back to the .5 is always possible and a very strong buyer area at 34,8k. If we do hit this area there is a strong possibility of wicking to 32,7k (.382fib) as the flow of buyers and sellers will start playing swings of .382-.618 around the .5 area.
As of now our 200 day moving average is right above 32k so that is still a pretty solid support.
RSI on almost all time lines are pointing to accumulation being at a flat signal (50) only when you get to the weekly is it overbought ( 70) so we could see more pull back over the next few weeks.
Bull Case:
I’m looking to break and consolidate above 45k and hit above 51k for the next moves up.
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These are just the theories of fib swings that we can set buys to. MA and RSI indicators can be used to reinforce the theories of price movement. But markets are silly and there’s always more economic data coming out with earning season hitting right now. The new ETF's add more data to consider.
Play wisely.
On my charts 41600 seems to be a huge support with wicks touching it but no solid candles below since December 18
My fib support below that is 40354 (.786)
The .618 is 37014 which according to fib theory is a retrace magnet. I have been highly anticipating a pull back to 38-36 area since we broke 40k, though the accumulation around 40-42 has been very strong, which has been a signal that this area might be a new local low.
A pull back to the .5 is always possible and a very strong buyer area at 34,8k. If we do hit this area there is a strong possibility of wicking to 32,7k (.382fib) as the flow of buyers and sellers will start playing swings of .382-.618 around the .5 area.
As of now our 200 day moving average is right above 32k so that is still a pretty solid support.
RSI on almost all time lines are pointing to accumulation being at a flat signal (50) only when you get to the weekly is it overbought ( 70) so we could see more pull back over the next few weeks.
Bull Case:
I’m looking to break and consolidate above 45k and hit above 51k for the next moves up.
--------------
These are just the theories of fib swings that we can set buys to. MA and RSI indicators can be used to reinforce the theories of price movement. But markets are silly and there’s always more economic data coming out with earning season hitting right now. The new ETF's add more data to consider.
Play wisely.
Comment:
Looking to hit 37014 if we get a solid week below 41,600. Possible retests of 41000 incoming.