With the volatile week coming to a close BTC has seen a weekly price range only dwarfed only by last week’s $15,000 trading range. The major difference of course is this week’s large-bodied candle is red signaling a decline for the week. It seems as though BTC is indeed at a tipping point and is entering a corrective period that will intensify should BTC not hold above $30,000.
It seems that our Fibonacci harmonic at $40,700 did come close to predicting the recent top in the market. The current action in Bitcoin is far too volatile to be viewed as consolidation coming into the market. As long as the support at $30,000 holds we will likely see jerky swift movements between $30,000 - $40,000. If this level breaks the next level of minor support is at $26,500 and we could even revisit major support at $20,000.
For traders looking to get into the market these two price points of $26,000 and $20,000 would be good entry points. The most effective way to trade this play would be to buy a third of your desired positions at $26,000 and two-thirds of your total position or double the size of your first order if and when it gets close to $20,000.
The best strategy right now is to be patient and not get pressured by FOMO or greed. This week also contained a drop in U.S. equities from their all-time highs, and as stated in earlier articles BTC is likely to move in the direction of the equities markets so when we see a turn around in equities, we can begin to get more bullish.