Bitcoin Analysis with Fibonacci and W.D. Gann
Bitcoin
The chart below is key to this analysis.
There are two methods we use at ONE44 to find support and resistance in the markets.
The first are major Gann squares, these are the yellow horizontal lines on the chart. On the chart you can see where the market turned multiple times at these levels.
The second is Fibonacci retracements and this is what most of this post will be about.
There are a few basic rules when using the Fibonacci retracements with the ONE44 rules and guidelines.
This is the short version.
A 38.2% level keeps the trend intact and new highs/lows should follow.
A 23.6% level shows the market is extremely strong, or weak.
A 61.8% level can cause wide swings and keep the market in a trading range.
A 78.6% level can send it 78.6% of where it just came from and even be the end or start of a Bull market.
We have done 43 videos on how to use the Fibonacci retracements with the ONE44 rules and guidelines. These Videos are worth watching even if it is not in the market you are trading, as the ONE44 rules and guidelines are the same for every market. You will also see why we believe the Fibonacci retracements are the underlying structure of ALL markets.
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11/2/24
Bitcoin
From last week,
The setback this week from 78.6% at 68.900 held above 23.6% at 65,150 and provided this level holds it can quickly go on to new highs, however until it can take out 78.6% at 68,900 there is still the possibility of a bigger setback and this level remains key for next week.
Use 68,900 as the swing point for the week again.
Above it, with the amount of sideways trade the next move higher could be an explosive one. It will first have to take out the 72,907 major Gann square and ATH high at 73,662. When and if....
It did indeed hold 65,150 and it quickly went to a new high, however it failed to take out the 72,907 major Gann square and the ATH. We will now watch the tight retracements below to see if this market can take another run at a new ATH, or if they remain in the very large sideways trade.
Use 72,907 as the swing point for the week.
Above it, with the amount of sideways trade the next move higher could be an explosive one. When and if it does take out 72,907 the long term target is 96,115, until then there are only major Gann squares above to look for resistance and then use as the swing point when closed above, the next two are 78,550 and 84,074.
Below it, a very strong sign would be to hold 23.6% back to the 8/5/24 low at 67,689, this is also a major Gann square, holding it can send it quickly to new highs. The short term swing point is 38.2% of the same move at 64,650.
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Our goal is to not only give you actionable information, but to help you understand why we think this is happening based on pure price analysis with Fibonacci retracements, that we believe are the underlying structure of all markets and Gann squares.
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On the date of publication, Nick Ehrenberg did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
