πŸ“ˆ Bitcoin Bearish Retracement Tests Fibonacci Support Levels πŸ“‰

3 min read

Hi traders,

Bitcoin (BTC/USD) is showing a bearish pinbar Japanese candlestick pattern (purple arrow), which indicates a reversal, retracement or exhaustion within the current uptrend. Price has indeed started to fall from that price zone, but what’s next?

BTC/USD

Day


Although BTC/USD is showing bearish price action, in my view it is probably only a retracement within the larger bullish trend and momentum (blue arrow). By placing the Fibonacci tool on the bottom to top (blue boxes), we are able to detect the key Fibonacci levels which are primarily the 38.2 and 50% in this case (due to the fact that price is probably in a wave 4).

Day 2


BTC/USD seems to have completed a wave 3 (purple) and price is now building an expected wave 4 (purple) corrective chart pattern, which could be a bull flag or triangle for instance. Once the correction is completed, we are expecting price to break above the pattern and move up higher as part of a wave 5 (purple). The invalidation level of the wave 4 is if price moves below the top of wave 1 (purple) which is indicated by the purple box. Keep in mind that wave 4s typically stop at the 23.6%, 38.2%, and 50% Fib levels so a break below the 50% already makes a wave 4 scenario less likely. Once price completes a wave 5, then a bearish ABC is expected to occur within a wave 2 or B after which a strong bullish upside is expected for wave 3 or C.

4 hour


Price is building a consolidation zone (purple arrows) on the 4 hour chart. Price could be building different types of chart patterns within the expected wave 4 (purple) correction but we are not expecting a break below the 50% Fibonacci level, support zone (purple box), and long-term moving average (green box). The Fibonacci levels (green box) should act as a support zone and only a break below the 61.8% (red box) makes that unlikely.

Good trading,
Chris Svorcik
Elite CurrenSea

4
Leave a Reply

avatar
3 Comment authors
ChrisCarol CapnerChrisMorris Recent comment authors

This site uses Akismet to reduce spam. Learn how your comment data is processed.

  Subscribe  
newest oldest most voted
Notify of
Morris
Guest
Morris

Mid to Long term Bullish? If so pls share your EW analysis? Grt work and Tnx.

Carol Capner
Guest
Carol Capner

Chris.
Would you consider sending out alerts on cryptos PLEASE… for an appropriate cost.
I would most definitely enroll.
I love your clear explanation on the charts, but the levels to the right are so small I cannot see what they are. Perhaps you could type what they are and where they are going.
I don’t like to interfere with your business, but it would help:)

Chris
Guest
Chris

Hi Carol, thank you for the feedback! We appreciate it πŸ™‚ We will be adding new bitcoin vids 3x a week and I will try to address the figures more carefully. Makes sense! Thanks and we hope to be adding more cryptos in general soon. Good trading!