Levels showing that every time we have dipped over the past year we have had support at .5 fib level or .618 fib level, and reversed after hitting one of these levels.
Fibonacci Levels showing that every time we have reversed off of the .5 or .618 fib level over the past year, we have hit the 2.618 Fibonacci level or surpassed it, as we did when going to all-time highs, eventually hitting the 4.236 level.
The Fibonacci Sequence is 1-1-2-3-5-8-13-21-34-55-89-144
As shown on this chart, we have reversed near all of these levels, and ultimately broke through 1k twice, 2k, 3k, 5k, 8k, and 13k .
Although we did not break 21k on bitfinex/coinbase/bitstamp, we did hit it on quarterlies contracts and reversed. These numbers have been a solid guide over the past year, showing where we may reverse from a pump or target. In the case of 21k, many people took profit before 21k because they knew that it was such a popular take profit area.
As shown in my charts, Bitcoin has reversed/bottomed at the .5 and .618 fib levels, if it does hit the 2.618 level, we will be hitting $34,000 per coin. Which is also the next Fibonacci number in the sequence. If we do in fact hit the 32-36k/34k area, and we dip, the .618 fib level will be 20k, a major psychological area, just like 10k was. 34k represents an area, so it is possible that we can reverse before it, or break through it.
This study is my case as to why we could go to 34k, this is not intended to freak people out or fomo into bitcoin . Please respect my charting as you would wish others to respect yours. Many people believe bitcoin will go down, and will not agree with this chart, please keep hateful comments to yourself. If you have a chart that you would like to share with me, please do so. I am not a biased trader, I take into account all perspectives.
If you enjoy my chart and study, please thumb it up, leave a comment below and or share it with a fellow trader. Thank you for your time. Good luck
If you are holding a long position on quarterlies per say, and you are scalping on perpetuals or bitfinex, it is a good idea to keep your leverage while shorting less than your leverage while longing. If you go underwater on a long position in an uptrend your risk is less than being underwater on a short. For some, this may be obvious, but it is often overlooked. Two very major supports are 15500 and 14300-14400 which is a major fib level.
If you noticed last night we had stayed under the .236 period for a good amount of time, this indicated to me to sell, also the trend line being broken. Now I rebought at 14300 and have been holding, if we move back towards the .382 level this can be an indicator that we could go lower. Although if we dip back down towards 14300 but reverse beforehand and make a higher low, then keep your position open.
Understanding how these fib levels work can make you a good spot trader