Hello and welcome to my potential reversal point idea on BTCUSD.
Following the extended selloff period on BTCUSD, I am anticipating a reversal point along the .236 fib level from the greater trend (10,000 to 5,750), which also aligns with the .618 fib level of the local trend (5,750-8,500). This would imply targets between 6,750-6,800 for ideal entries, although early scaling into the position is recommended, as we may not see the precise area get hit. In addition to the fib levels, this is also in alignment with a trendline from the bottoms formed at the local 6,000 area, as demonstrated by the thick orange line.
If this were to bounce, I would anticipate 7,150-7,170 at the very minimum, with a potential retest of the large pennant's resistance (from the daily 2018 trend).
Do note, this strategy implements a tight stop loss, as a failure to bounce at the .618 fib will greatly diminish the possibility of a bullish momentum recovery.
Stay safe and happy trading :)
Following the extended selloff period on BTCUSD, I am anticipating a reversal point along the .236 fib level from the greater trend (10,000 to 5,750), which also aligns with the .618 fib level of the local trend (5,750-8,500). This would imply targets between 6,750-6,800 for ideal entries, although early scaling into the position is recommended, as we may not see the precise area get hit. In addition to the fib levels, this is also in alignment with a trendline from the bottoms formed at the local 6,000 area, as demonstrated by the thick orange line.
If this were to bounce, I would anticipate 7,150-7,170 at the very minimum, with a potential retest of the large pennant's resistance (from the daily 2018 trend).
Do note, this strategy implements a tight stop loss, as a failure to bounce at the .618 fib will greatly diminish the possibility of a bullish momentum recovery.
Stay safe and happy trading :)