This analysis of Bitcoin (BAX24) (BTCUSD) is centered around the chart provided below. At ONE44, we employ two primary methods to identify support and resistance levels in the market.
The first method involves the use of major Gann squares, which are represented by the yellow horizontal lines on the chart. These levels have historically marked significant market turns.
The second method, which will be the focus of this post, is the application of Fibonacci retracements. There are several fundamental rules when applying Fibonacci retracements in conjunction with ONE44’s rules and guidelines:
– A 38.2% level indicates that the trend remains intact, with the expectation of new highs or lows.
– A 23.6% level suggests that the market is either extremely strong or weak.
– A 61.8% level can lead to substantial price swings and may confine the market within a trading range.
– A 78.6% level can potentially reverse the market by 78.6% of its recent movement, and may signal the end or beginning of a bull market.
We have created 43 videos on utilizing Fibonacci retracements with ONE44 rules and guidelines. These videos are worthwhile to watch regardless of the market you are trading in, as the ONE44 rules and guidelines are identical for every market. You will also understand why we think Fibonacci retracements are the underlying structure of ALL markets. This is the latest… As of November 2, 2024. Bitcoin from last week. The setback this week from 78.6% at 68,900 held above 23.6% at 65,150. If this level holds, it can quickly reach new highs. However, until it can surpass 78.6% at 68,900, there is still a possibility of a larger setback. This level remains crucial for next week. Use 68,900 as the swing point for the week again. Above it, given the amount of sideways trade, the next move higher could be explosive.
Bitcoin’s price trajectory is under scrutiny with the application of Fibonacci and W.D. Gann’s analytical methods. To achieve a new all-time high (ATH), Bitcoin must first surpass the significant Gann square at 72,907 and the ATH high at 73,662.
Despite reaching a new high after holding at 65,150, Bitcoin failed to break through the 72,907 Gann square and the ATH. Traders are now closely monitoring tight retracements to determine if Bitcoin can make another push for a new ATH or if it will remain in a large sideways trade. The 72,907 level is considered a pivotal swing point for the week.
If Bitcoin surpasses 72,907, the next upward move could be significant, given the extent of the sideways trade. The long-term target, should it break this level, is set at 96,115. Until then, other major Gann squares above this level, at 78,550 and 84,074, will be watched for resistance and could serve as new swing points once surpassed.
On the downside, a strong sign would be Bitcoin holding at 23.6% Fibonacci level, aligning with the 8/5/24 low at 67,689, which is also a significant Gann square. Holding this level could propel Bitcoin quickly to new highs.
The short term swing point of Bitcoin is 38.2% of the same move at 64,650. Sign up here for free future updates on Gold, Crude Oil, SP 500 and Bitcoin. ONE44 Analytics offers concise and to-the-point analysis. Our goal is to provide actionable information and help you understand why things are happening based on pure price analysis with Fibonacci retracements, which we believe are the underlying structure of all markets, and Gann squares. If you like this type of analysis and trade Grain/Livestock futures, become a Premium Member. You can also follow us on YouTube for more examples of using Fibonacci retracements with ONE44 rules and guidelines. FULL RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment.
Commission Rule 4.41(b)(1)(I) states that hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, as the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors such as lack of liquidity. In general, simulated trading programs are subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. Past performance is not necessarily indicative of future results.
