TradingElephant

Bitcoin Movement based on Numerous Potential Factors

Long
BITSTAMP:BTCUSD   Bitcoin
Much of the reasoning behind my future price action speculation can be found in the chart itself, yet I will include some further details below. I first drew the Fibonacci levels in order to find the support/resistance levels given the range of price we are already in. Notice how many times the price crossing that 50% retracement level correlated with the price going upwards afterwards. Once I had the Fibonacci levels in place, I set up the Gann Fan, a tool I use when determining future support/resistance levels after a sudden drop in price. Notice how the price action respects the Gann lines, especially the 1:3, 1:1, and 2:1 lines. The next thing I placed in my chart was an Ichimoku cloud, due to it's tremendous capability in forecasting the amount of resistance and support at a given time, 26 periods ahead. The thickness of the cloud represents this support/resistance very well, and in the chart, we have found great support in order to even enter the cloud; yet a true bull run would not be supported by the Ichimoku until both the price action and the Chikou span are both above the cloud. The elliot wave, and elliot retracement both follow their principles in the chart, and I used a known support/resistance line to demonstrate how the elliot waves may react at that particular level. And finally after this major bull run to roughly $380 concludes, we'll most likely retrace, either for another leg up, or back down for a potential double bottom.

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