BTC is following a very interesting pattern. There is a very large similarity between what happened in 2014,2015, 2016 and now.
We had a major correction started at point A in late 2013, and ended at B early 2015, which is very similar to the most recent major correction from pont C to D.
After bottoming at B the price rallied and stopped temporarily at the 61.8% retracement for AB wave. The price corrected lower but maintained the trend structure of higher highs and higher lows. And that was followed by a breakout to new all time highs above point A.
Amazingly similar, recently, the price has also stopped at the 61.8 retracement for CD and correcting lower. Now, if the history continues to repeat itself, we should expect no break of the latest swing low for the uptrend at 9050, and the price to resume the bullish wave to new highs above D.
If we break 9050, we will probably extend the downside towards the 52 week moving average. But that would not completely damage this similarity scenario, which remains in place as long as the 52-weeks average is holding.
Best
Technician
We had a major correction started at point A in late 2013, and ended at B early 2015, which is very similar to the most recent major correction from pont C to D.
After bottoming at B the price rallied and stopped temporarily at the 61.8% retracement for AB wave. The price corrected lower but maintained the trend structure of higher highs and higher lows. And that was followed by a breakout to new all time highs above point A.
Amazingly similar, recently, the price has also stopped at the 61.8 retracement for CD and correcting lower. Now, if the history continues to repeat itself, we should expect no break of the latest swing low for the uptrend at 9050, and the price to resume the bullish wave to new highs above D.
If we break 9050, we will probably extend the downside towards the 52 week moving average. But that would not completely damage this similarity scenario, which remains in place as long as the 52-weeks average is holding.
Best
Technician