Fibonacci and Elliott on all time frames plus tips and tricks for COINBASE:BTCUSD by ItsShowtime
If you want to know all my thoughts on the current situation for Bitcoin , my look on the near and long term future as well as the recent past, please read through this article carefully.
Here follows a short term chart I would like to keep on top as further reference. It reflects my short term look on Bitcoin , this is how I have always pictured it ever since I started to believe the bottom was in more than a week ago.
The extended bear market A.K.A Corona fear bottom is in?
Of course you can never be sure about it, but I keep on finding new evidence based on my past analysis and charts that would support this situation where the long term bottom is in. Keep in mind that I have been convinced of this scenario since we broke 6k the first time (as that indicated to me that something more was going on than just an ordinary ABC correction upwards), so please try to think for yourself and counter the idea that the bottom would be in already.
So why might the bottom be formed at the 3.8k range (on Coinbase)?
- We have since gained almost 100% in a matter of a few weeks.
- The chart pattern looks like it creating a fifth leg upwards according to the Elliott ruleset (keep in mind I am not an Elliott specialist)
- Apparently (I just found out) the bottom corresponds with the extension of the Fibonacci drawn after we thought the bottom was formed around 6.4k previously. You can see in the chart below that this would correspond with the 1.616. Please keep in mind that I simply reused my Fibonacci Retracement drawn months ago, instead of drawing a proper Fibonacci Extension to support the specific case.
The correction on Wave 2
As mentioned in my previous Idea which is also linked, I expected the correction on Wave 2 to reach the golden pocket area (bottom green rectangle ) which had a lot of market acceptance/volume from previous price action. Instead bulls were able to take over control at the 0.5 FIB (top green rectangle ) which is a very good sign!
What does this mean for myself and others who were counting on that golden pocket during this short term correction?
–> I always tell you to spread your orders and start with low quantities (cross) or smaller positions (fixed), in my case I grabbed about half my portfolio A.K.A 0.5x at the 0.5 FIB which turned out to be the bottom.
–> Same advise as always, keep it low leverage! You might enter higher if you did not account for the 0.5 FIB at all, this is not an issue but keep that higher entry low leverage as you should at all times.
–> I will showcase to you how you can nail your entry even in such parabolic price action. Based on the next chart you can see where I added to my position after the chart went up parabolic over the course of minutes… I simply drew the 0.5 FIB from that correction bottom towards the what looked to be short term top and added small positions over there. You’ll see that it created a beautiful second higher low short term, which you can always use as a place to add more and put a stop loss in case you want to cut losses to the minimal.
The correction and expectations you should set
Detailed view on the short term parabolic price action and how to tackle it
Last but not least! An overview of how I expect the market to behave over the rest of the year 2020, you can call this my mid term view on Bitcoin
This chart is a very simple overview, which is only based on previous price actions, common sense, interesting pivots and OF COURSE our good friend Fibonacci. Take this with a grain of salt.
Thank you for sticking with me guys, I appreciate the possitive comments I get once in a while in the chat groups! Please leave a like and/or comment if you like this kind of information, find it useful or if you want to improve my view on the situation or ask questions!