Hello everyone! 🙋 Coming in with fresh-new technical analysis. Today under the magnifying glass🔍 we got Bitcoin - the king of cryptocurrencies. From the beginning of September we are in serious correction 📉 that can bring a great opportunity to buy bitcoin at good price.
I base my forecast on head & shoulders pattern and assume that the price should go down now until it finds a strong support level. We will try to seek for those supports that can lift the price back up. So let's look into it. :)
Basing on Fibonacci retracement that I pulled from ~1830$ to the ~4970$ (ATH) I can tell that the support might be on 0.5 level (~3400$) or 0.618 level (~3030$). The head & shoulders pattern says that the dip should drop to ~2900$ - it would be actually a great fall - about 40%, I'm neutral about that. Furthermore, the last ATH from 11th June is at 3000$ - I find it a decisive level. So what might be the forecast? There are three options:
- The price falls to 3400$ and tests it - might have fake lift-off signal and keep going lower - quite big risk of falling lower
- The price falls to 2900$ - 3100$ zone and jumps up after that surely and strongly - less risk cause of 40% decreasement and undervalued bitcoin
- We break 2900$ - 3000$ levels and we keep going down - don't buy then until a strong buying signal
Adding chart with cool drawings as always ;)
Thank you for reading! Show me your thoughts in the comments and leave an upvote if you like. ;) Cheers!