I've been following far better and more experienced traders than myself for some time now.
And - with the help of their posts - I studied the history of BTCUSD for a while. They all state that after a strong - parabolic - move up, BTCUSD always pulls back strong.
According to historical charts even up to the 0.618 Fib-level.
We all don't know if that will happen this time around or that the correction might be (a bit) smaller.
That's why I have projected other Fib-levels also on this chart.
A drop to the .236 Fib gives a price of 6900/7100USD
A drop to the .382 Fib gives a price of 6200/6400USD
A drop to the .5 Fib gives a price of 5600/5800USD
A drop to the .618 Fib gives a price of 5200USD
When you draw a channel on the price action of late, you can see where the bottom of that channel is.
The bottom correlates pretty nicely with the .5 FIb in my opinion. That's also around a weekly S/R level. So that's where I would like to buy some BTCUSD.
Personally I don't think we will see a pull back all the way tot the .618 Fib, but of course I'm not complaining when that does happen. :)
Because the forecast of BTCUSD is far beyond 10k, any buy back at the above mentioned levels seems like a good idea. So I might buy already at the .236 level and see what happens from there one.
No financial advice, just my thoughts. I just entered crypto at the end of 2017 with a huge FOMO...and yes, in hindsight that was definitely the worst time to have entered indeed... ;)
And - with the help of their posts - I studied the history of BTCUSD for a while. They all state that after a strong - parabolic - move up, BTCUSD always pulls back strong.
According to historical charts even up to the 0.618 Fib-level.
We all don't know if that will happen this time around or that the correction might be (a bit) smaller.
That's why I have projected other Fib-levels also on this chart.
A drop to the .236 Fib gives a price of 6900/7100USD
A drop to the .382 Fib gives a price of 6200/6400USD
A drop to the .5 Fib gives a price of 5600/5800USD
A drop to the .618 Fib gives a price of 5200USD
When you draw a channel on the price action of late, you can see where the bottom of that channel is.
The bottom correlates pretty nicely with the .5 FIb in my opinion. That's also around a weekly S/R level. So that's where I would like to buy some BTCUSD.
Personally I don't think we will see a pull back all the way tot the .618 Fib, but of course I'm not complaining when that does happen. :)
Because the forecast of BTCUSD is far beyond 10k, any buy back at the above mentioned levels seems like a good idea. So I might buy already at the .236 level and see what happens from there one.
No financial advice, just my thoughts. I just entered crypto at the end of 2017 with a huge FOMO...and yes, in hindsight that was definitely the worst time to have entered indeed... ;)