Good day Hiveians!
Join me in analyzing the crypto markets!
This is an update to the post 'BTC Correction confirmed' from several weeks ago.
What's up with BTC/USD(T)?
There is a lot going on in the charts that I'm sharing and I want to appologize if things look too messy. But all of those lines have a meaning :)
If you have read the last post, you know that I like to talk about fractals and how they have a very good predictive power. I once more suggest that the oval/cirlce drawn here are fractals: the means that they follow a similar pattern (although they never reoccur exactly). In fact, you can see a lot of differences between them. But what you should notice are the little "hills" and "valleys" along the upward and downward movements. These are more pronounced (bigger) in the circle as opposed to the oval which means that they also are drawn out over a longer period of time.
The current position suggests that we are in a downward trend (short term) and that there are a lot of factors currently playing into how far this correction will go. I think 9.2k (CME gap), 8.6k or 7.4k are good support levels. As it is not possible to predict where this correction (if it occurs) will settle we have to look for past clues...
A very significant fractal for this is the one which started the bull run we are currently in. If you look closely you can see the similarities with the bigger one.. which one? This one:
The mini fractal suggests a correction somewhere between the levels I mentioned above. But you can see that it is not very exact - as it mainly indicates a correction of medium size (not as large as the previous one; which corresponds to the one we had in March).
Another crucial indicator is volume: you can it in this chart from above as the thick blue line:
It is down since march 2020 and clearly indicates that a break out to a higher top is unlikely: "A breakout without volume is most always a fakeout". After the proposed correction (which will raise volume significantly) we should be heading for new highs (which is also evident in the mini fractal) :)
As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!
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