BTCUSD Fibonacci Circles and Challenge of Sweeping 53K Local Top for BITFINEX:BTCUSD by babychamp31415

The levels in blue that appear to be lines are actually Fibonacci circles (if you zoom out) with a trend line that starts from the 2015 bear market bottom and acts as support in BTCUSD’s uptrend towards 20k and also acts as support in 2018 bear market. The price has been hugging this trend line for years before and during take-offs to the upside.

Around the 65k top and around the 53k recent local top, these circles have clearly acted as resistance, not to mention the very clear support at 30k region.

The much smaller black Fibonacci circles have a trend line starting at the recent point of time and price from where the mid-term rally began in late July, and its trend line has been the region of support during the recent 18% crash. If you look close, as of now these black circles are providing support and resistance levels. Interestingly, the trend line crosses 65k in late Oct – early Nov but, that could be a coincidence and time will tell.

Note that Fibonacci circles encompass the same Fibonacci sequence that sets the same ratios between these circles and likewise, have not been adjusted to meet the price.

Based on this, the price could face relevance (in terms of both support and resistance ) when it reaches the next blue circle that’s currently sitting around 51k but gets much lower with time if you observe the chart and the pattern.

***This makes perfect sense in terms of how we all anticipate sweeping the 53k local top, because from where we are now, breaking 51k in the near future would make the market easily rush towards 53k and potentially break it.

At the same time, that also means that if we take much longer to get towards 53k, we would only be encountering the same resistance circle at lower and lower levels, and that’s a fact that syncs with the aforementioned sentiment shift of the market. In this case, given the impression of averaging below 50k for long enough, breaking 50k itself would already be signaling at potential to break 53k.

On a contrarian note, that same potential sentiment shift could turn a bull trap until these resistances are broken not just via price but time, aka confirmation.

If we start losing support from the black Fib circle the price is currently on, there’s support from the next region of the same circle around 40-42k and next at 38k.

In a less bearish scenario in the short-term, the price could slowly keep bouncing off of the black Fib circle sloping to the downside, from 47.5k to 44k, acting as support (or resistance if we go lower too quickly).

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