Analyis of BTC Reactivity Zones using Time based Fibonnaci
Important to Note:
WEEKLY CHART BTCUSD
4 red circles
2 time-fib zones marked by grey 0 ranging from year 2017-2025
1 fibonnaci retracementt zone represents last low to high price 2800 -6900
2 black horizontal lines representing buy zone
Analysis is not trading advice and subject to change.
1. Fibonnaci retracement tool marked from previous low to high of price 2800-6900 shows price breaking below previous low 2800. I decided to trace back for possible zone price would likely revisit, see RED CIRCLE 1. Circle 1 shows key price action at 1981 where BTC experienced its first major "bull run" July 2017, however, this zone was NEVER retested despite todays current price action with recent high of 6900. Thoughts: based on retracement tool price will seek to react at extension level at price 14500 or react at price 1989 based on market structure.
2. For time based fibs (do your own research for understanding). Based on RED CIRCLE 1 in year 2017 the first time based fib indicates high to low at that point. Time fib tells us that number 1-8 are irrelevant and to look for price action at numbers 13, 21, 34, 55 etc. RED CIRCLE 2 indicates BTC second "bull run" at number 13 indicated by vertical blue line. Today, 5 years later we are approaching RED CIRCLE 3 at number 21 on time fib. Thoughts: based on price that never retested the zone is still valid for buy entry and we are preparing to experience reactivity.
3. Since time based fibs proved to be true for 2017 previous bull run, i decided to compare most recent low and high price 2800-6900 using time fib, indicated by second grey zero vertical line. Again, time fib tells us that the numbers 1-8 are irrelevant and to look at price action at numbers 13, 21, 34 etc. It is key to note that at RED CIRCLE 4, number 34 and 13 create an overlap in both time based fib analsyis. This overlap also occurs 5 years from today just after the next BTC halvening event. Thoughts: based on ideas of time based fib we see multiple overlaps in MAJOR chart events expected to occur in future.
Conclusion: Im looking for price reactivity for BTC within the next month (not a prediction) and will utilize 14500-2000 as a potential buy zone for the next bull run over the next few years.
I don't predict the chart, I just react to it, Happy Swing Trading :-)
WEEKLY CHART BTCUSD
4 red circles
2 time-fib zones marked by grey 0 ranging from year 2017-2025
1 fibonnaci retracementt zone represents last low to high price 2800 -6900
2 black horizontal lines representing buy zone
Analysis is not trading advice and subject to change.
1. Fibonnaci retracement tool marked from previous low to high of price 2800-6900 shows price breaking below previous low 2800. I decided to trace back for possible zone price would likely revisit, see RED CIRCLE 1. Circle 1 shows key price action at 1981 where BTC experienced its first major "bull run" July 2017, however, this zone was NEVER retested despite todays current price action with recent high of 6900. Thoughts: based on retracement tool price will seek to react at extension level at price 14500 or react at price 1989 based on market structure.
2. For time based fibs (do your own research for understanding). Based on RED CIRCLE 1 in year 2017 the first time based fib indicates high to low at that point. Time fib tells us that number 1-8 are irrelevant and to look for price action at numbers 13, 21, 34, 55 etc. RED CIRCLE 2 indicates BTC second "bull run" at number 13 indicated by vertical blue line. Today, 5 years later we are approaching RED CIRCLE 3 at number 21 on time fib. Thoughts: based on price that never retested the zone is still valid for buy entry and we are preparing to experience reactivity.
3. Since time based fibs proved to be true for 2017 previous bull run, i decided to compare most recent low and high price 2800-6900 using time fib, indicated by second grey zero vertical line. Again, time fib tells us that the numbers 1-8 are irrelevant and to look at price action at numbers 13, 21, 34 etc. It is key to note that at RED CIRCLE 4, number 34 and 13 create an overlap in both time based fib analsyis. This overlap also occurs 5 years from today just after the next BTC halvening event. Thoughts: based on ideas of time based fib we see multiple overlaps in MAJOR chart events expected to occur in future.
Conclusion: Im looking for price reactivity for BTC within the next month (not a prediction) and will utilize 14500-2000 as a potential buy zone for the next bull run over the next few years.
I don't predict the chart, I just react to it, Happy Swing Trading :-)
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