Hi friends! Welcome to this update analysis on Bitcoin! I'd like you to sit back, relax, and prepare to have your minds blown, as I show you why Bitcoin is poised to erase 100% of it's gains, since 11/12/17.
Looking at the four hour chart, you can see that BTC formed a large head and shoulders pattern, when it reached the all-time high. In order to find a hypothetical price target for that pattern, I've measured it's height, from the neckline to the highest point of the head. Then, I've subtracted that amount from the breakdown level. Based on the size of this structure, IF it were to correct to it's full potential, we would reach a price of approximately $5,650.
As time progressed, you can see that we later formed a triangle pattern (in black.) Taking measurements of that pattern, in order to find a hypothetical price target, we can see that (based on the size of the structure) it too, suggests a target exactly at the $5,650 level.
You may be wondering what the significance of the $5,650 level is, and if you look at the left side of the chart, you can see a "1" circled in red. That level, represents a 100% Fibonacci retracement, from the low on 11/12/17, to the all-time high. Interestingly, these completely separate structures on the chart, suggest a retracement to the 100% Fib. I don't care who you are (hater or lover) or what you have to say — I see beauty in this. I see perfect symmetry, which speaks volumes to the fractal nature of these markets. I am a strong believer in fractal market theory. In mathematics, fractals can be described as fragmented geometric shapes, that can be broken into smaller parts, which fully or nearly replicate the whole. With that said, each pattern on this chart, is a small part of the whole. The fact that the overall structure, has completely separate parts, which precisely suggest a common retracement, can only be explained by fractal market theory. This phenomenon isn't only present in the BTC chart. It's also present in LTC, XRP, ETH, IOT, XLM, and many others. Clearly, the presence of fractal market action is undeniable.
To be clear, I'm not saying that it is a 100% certainty that my target will be met. I'm just showing you what's on the chart. It's a well known fact that formations don't always correct to their full potential. I'm simply publicizing the information that's on the chart. What you decide to do with it, is totally up to you.
Looking at the recent price action, we can see that a small bear flag is forming, and momentum is continuing to expand to the downside. A break of the bear flag should occur, sending BTC down to test the rising dashed green trendline, which originates at the beginning of the rally. A break below the dashed green trendline, would be a red flag warning, that BTC is in self destruct mode. Many traders are expecting that level to hold, which is possible, but if it fails, that would highly increase the probability that the downside target of $5,650 would be reached.
Overall, it's clear that the bears are sinking their teeth into this market. It's possible that BTC could catch a bounce off of the dashed green trendline, possibly even to retest the top of the pink downtrend channel. However, as long as we remain under the top of the downtrend channel, I can assure you with 100% certainty, that my downside price target will eventually be met. =D
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-
Looking at the four hour chart, you can see that BTC formed a large head and shoulders pattern, when it reached the all-time high. In order to find a hypothetical price target for that pattern, I've measured it's height, from the neckline to the highest point of the head. Then, I've subtracted that amount from the breakdown level. Based on the size of this structure, IF it were to correct to it's full potential, we would reach a price of approximately $5,650.
As time progressed, you can see that we later formed a triangle pattern (in black.) Taking measurements of that pattern, in order to find a hypothetical price target, we can see that (based on the size of the structure) it too, suggests a target exactly at the $5,650 level.
You may be wondering what the significance of the $5,650 level is, and if you look at the left side of the chart, you can see a "1" circled in red. That level, represents a 100% Fibonacci retracement, from the low on 11/12/17, to the all-time high. Interestingly, these completely separate structures on the chart, suggest a retracement to the 100% Fib. I don't care who you are (hater or lover) or what you have to say — I see beauty in this. I see perfect symmetry, which speaks volumes to the fractal nature of these markets. I am a strong believer in fractal market theory. In mathematics, fractals can be described as fragmented geometric shapes, that can be broken into smaller parts, which fully or nearly replicate the whole. With that said, each pattern on this chart, is a small part of the whole. The fact that the overall structure, has completely separate parts, which precisely suggest a common retracement, can only be explained by fractal market theory. This phenomenon isn't only present in the BTC chart. It's also present in LTC, XRP, ETH, IOT, XLM, and many others. Clearly, the presence of fractal market action is undeniable.
To be clear, I'm not saying that it is a 100% certainty that my target will be met. I'm just showing you what's on the chart. It's a well known fact that formations don't always correct to their full potential. I'm simply publicizing the information that's on the chart. What you decide to do with it, is totally up to you.
Looking at the recent price action, we can see that a small bear flag is forming, and momentum is continuing to expand to the downside. A break of the bear flag should occur, sending BTC down to test the rising dashed green trendline, which originates at the beginning of the rally. A break below the dashed green trendline, would be a red flag warning, that BTC is in self destruct mode. Many traders are expecting that level to hold, which is possible, but if it fails, that would highly increase the probability that the downside target of $5,650 would be reached.
Overall, it's clear that the bears are sinking their teeth into this market. It's possible that BTC could catch a bounce off of the dashed green trendline, possibly even to retest the top of the pink downtrend channel. However, as long as we remain under the top of the downtrend channel, I can assure you with 100% certainty, that my downside price target will eventually be met. =D
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-