Based on a basic rule of thumb, if the .786 or greater retracement is hit after a significant bull or bear trend it is expected that a reversal has taken place.
BTCUSD just so managed to hit the .786 after its 2018 low of 3100. Therefore based on this rule, BTC has entered an unconfirmed bull trend.
Keeping this in mind, it would be wise for fib traders like myself to start to look for major retracement levels for BTC .
One of the most common levels is the .382 which just so happens to be just below where we are now at 7852.0.
As long as this level is held, we can expect further upward movement from BTC .
However IF this level breaks, I would find it extremely likely that we would test the major trend line around $7000 and possessively even the .5 retracement level around 6600.
Looking further down we also have Multi-Year Horizontal support at $5850.
My Plan & Opinion:
With us currently above the .382 support, I would love to enter a long term long. However at the moment there seems to be too much hesitation and uncertainty, so an additional leg down seems very likely.
I believe IF BTC were to test the $7000 area larger investors would feel more comfortable entering the market. So why would I be willing to buy here if they are not.
I will be paying attention to lower time-frames in search of trend confirmations and try to keep everyone updated with my position.
Markets are like life, they rarely go as planned.
Hope you enjoyed this update, and trade carefully!
BTCUSD just so managed to hit the .786 after its 2018 low of 3100. Therefore based on this rule, BTC has entered an unconfirmed bull trend.
Keeping this in mind, it would be wise for fib traders like myself to start to look for major retracement levels for BTC .
One of the most common levels is the .382 which just so happens to be just below where we are now at 7852.0.
As long as this level is held, we can expect further upward movement from BTC .
However IF this level breaks, I would find it extremely likely that we would test the major trend line around $7000 and possessively even the .5 retracement level around 6600.
Looking further down we also have Multi-Year Horizontal support at $5850.
My Plan & Opinion:
With us currently above the .382 support, I would love to enter a long term long. However at the moment there seems to be too much hesitation and uncertainty, so an additional leg down seems very likely.
I believe IF BTC were to test the $7000 area larger investors would feel more comfortable entering the market. So why would I be willing to buy here if they are not.
I will be paying attention to lower time-frames in search of trend confirmations and try to keep everyone updated with my position.
Markets are like life, they rarely go as planned.
Hope you enjoyed this update, and trade carefully!
Trade active:
Major Support Hit
Comment:
Creator of DepthHouse Indicators on TradingView!
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↣ depthhouse.com/
