Analysis:
Fibs. if you know how to use them are an important tool to have.. But not all Fibs. are created equal. Some are the last line of defence and perhaps the best and less riskiest. Don't get me wrong, risk is still present but minimized risk of course is a smart management method.
The 61.8% retracement has been the most popular among Fib. analysts, but the lesser known brother is the 78.6%. This latter Fib. has always been the opportunistic Fib and for Elliott Wave practitioners out there, they will understand that this is the last line of defence for a NEW trend move.
Most if not all Crypto-Currencies have reached their respective Fib. retracement levels. This should signal a low risk entry into a long position. I need to reinforce that the signals are still OS.. If you read the past few blogs, you will know the importance of the OS / OB condition and when to trade it. We could ultimately see prices that will never revisit these levels for a long long time. I suppose things are all possible.. But putting in context that if prices break below this MAJOR SUPPORT, we would have a value back down to when most crypto-currency started their life. Most of these cryptos do not deserve to even be birthed from the getgo, but to bring the rest of the quality cryptos down with them is not realistic. If you do want to concieve this scenario, the targets would follow;
ETH - $90.00
BTC - $1757.00
LTC - $10.00
ETC - $6.00
The current euphoria does not warrant these levels, and we have not seen "euphoria" despite the look of a "bubble" in price..
Foot Note:
-RIGHT CLICK ON IMAGE AND OPEN IN ANOTHER TAB TO SEE FULL RESOLUTION-
When analyzing this chart, you will notice the Slow Stochastics indicator. I find this indicator to be the complete indicator compared to the vast majority out there. Lets explore the terms I will be using. Also use the indicator based on its respective time-frame:
Time-Frame:
1 hour - Lasts 1 hour - Few days
Daily - Last Days - Week(s)
Weekly - Last Week(s) to Month(s)
Term used:
OB - OverBought (above 80)
OS - OverSold (Below 20)
Bullish - Above 50
Bearish - Below 50
Trend - Cross up in both channel line or Cross down in both channel line.
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