Price has completed a rather perfect AB=CD pattern (see small letters). The D-target
was @63K and ATH was reached earlier and somewhat higher @ 64,9K
The retracement of the AB has followed perfectly
the fibonacci levels. Last weeks drop reached the 38,2 fib and this
weeks sharper drop nicely bounced off the 61,8 fib @ 30,6K.
If we make a larger AB=CD pattern by turning the AD of the smaller pattern
to the AB of the larger, we have a new D-target @ 85,8K. The timestamp
for the D is at 27 dec 2021. If price appreciates faster, the chances are
higher for a 1,272 or 1,618 extension of the target.
Since price has been extremely stretched out from the Kumo Cloud,
this correction was both needed and expected .
Bulls would like to see a weekly close above the Kijun Sen (white
equilibrium line) @ 40 557, to relieve the downard momentum.
Bears would prefer a close below it and ideally below the 50% fib
@ 37 154, to continue downward pressure and ideally create a lower low
towards the 78,6 fib @ 21 385
It is well worth noting that usually a bear market or bull market starts
when the Tenkan Sen breaks above or below the Kumo Cloud.
Currently the Tenkan Sen (the lagging span) is far from the Cloud,
which makes this current drop, likely to be a correction
before further gains.
was @63K and ATH was reached earlier and somewhat higher @ 64,9K
The retracement of the AB has followed perfectly
the fibonacci levels. Last weeks drop reached the 38,2 fib and this
weeks sharper drop nicely bounced off the 61,8 fib @ 30,6K.
If we make a larger AB=CD pattern by turning the AD of the smaller pattern
to the AB of the larger, we have a new D-target @ 85,8K. The timestamp
for the D is at 27 dec 2021. If price appreciates faster, the chances are
higher for a 1,272 or 1,618 extension of the target.
Since price has been extremely stretched out from the Kumo Cloud,
this correction was both needed and expected .
Bulls would like to see a weekly close above the Kijun Sen (white
equilibrium line) @ 40 557, to relieve the downard momentum.
Bears would prefer a close below it and ideally below the 50% fib
@ 37 154, to continue downward pressure and ideally create a lower low
towards the 78,6 fib @ 21 385
It is well worth noting that usually a bear market or bull market starts
when the Tenkan Sen breaks above or below the Kumo Cloud.
Currently the Tenkan Sen (the lagging span) is far from the Cloud,
which makes this current drop, likely to be a correction
before further gains.