BITCOIN Another fractal pointing to the $6000 region.

BITCOIN Another fractal pointing to the $6000 region.
Bitcoin / Dollar BITFINEX:BTCUSD
TradingShot

The last idea discussed the implications of Bitcoin entering the Buy Zone of the Parabolic Channel and how this can turn into a potential Buy Signal near $6500 relative to the price action of the 2016 Bull Cycle.




This time I want to focus on the more recent price action and what is more relevant than comparing the current bearish channel to the 2018 bear market. The comparison alone can only offer us a certain degree of reliability as the current one is only a pull back within the new 2019/2020 Bull Market while the former is a whole Bear Market of its own. However in combination with the previous BTC analysis on $6500, it provides very useful conclusions.

First and foremost lets point out what these patterns have in common:

#1 Strong rejection from the 1D MA50.

#2 First time crossing below the MA200 (after a multi-month period).

#3 Lower Highs forming a bearish channel .

#4 Ichimoku Cloud indicating there is one last dip to expect.

#5 Both completed a full (0) retrace on their fibonacci scale with that MA pull back.



All the above indicate that the two patterns have a fairly similar price action. If the current one ends up as the 2018 bear cycle then it should complete the whole sequence on a -0.5 Fibonacci extension . That places the potential bottom at $6400 which is currently in the middle of the long term Buy Zone of the Parabolic Growth Curve and since we are on an emerging Bull Market this is a fair price estimate for a Bottom.

I have conducted a similar pattern comparison on slightly different parameters 10 days ago which roughly showed a bottom in the $5000 region:




So as you see many different approaches point out to roughly the same prive behavior. Long term investors should be ready to buy that dip or scale it with 2 or 3 different buy entries within those zones.

Which price are you willing to buy at for a long term investment? Please like, subscribe and share your comments, ideas and charts with me!