Bitcoin | The Gold Forecast

First weekly decline in nearly two months for BTC

Friday, January 15, 2021 - 20:18 by Joseph M. Wagner II

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.

Proper Action

Look for oppurtunity to buy at $26,000 (light position) and $20,000 (large position).

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Previous Reports:

Thursday, January 7, 2021 - 18:41
Instead of going over the current wave count, I find it more relevant and noteworthy to cover a few Fibonacci harmonics in BTC which may very well mark the end of the current rally, and if a correction is to follow where that correction could take us to. The first set of Fibonacci numbers comes from a retracement starting at 2017 record highs at $20,000 down to the bottom in December 2018 at... Read more
Tuesday, January 5, 2021 - 06:41
With 2020 finally over a lot of things are pointing to the possibility that BTC’s rally is also coming to a wrap. The majority of the technical studies that are predicting the end of this rally or at least this leg of it come from Fibonacci extensions and wave theory. One of the more obscure indications is from a candlestick pattern called ‘three gaps’ where you get four green candles with upside... Read more
Wednesday, December 30, 2020 - 16:46
With so many investors of all scales buying into the world’s largest digital currency it was exactly what Bitcoin needed to reach today’s future price of $29,185, putting Bitcoin up 300% on the year. At the start of the Covid-19 pandemic reaching countries around the world in March 2020, Bitcoin fell from $10,000 to this year’s lows at around $4,000. This occurred as the S&P 500, Nasdaq... Read more