This article was first published on Metal Blog
Bitcoin (BTCUSD) (Weekly / 12-hour Comparison)
Bitcoin is looking strong on higher time frames, but let’s entertain the possibility of a short term bear case/final shakeout comparing opposing fibonacci retracement ranges. On the weekly chart (left), we see a nice reaction from the “continuation levels” (top green box- 0.322-0.382 retrace). A reaction at this retracement area rarely sees follow through beyond the “fakeout level” (-0.1, ~$65k here). The 12-hour chart (right) shows reversed fib ranges indicating that price is currently hitting resistances at the Optimal Trade Entry, or “OTE” which is 0.62-0.79.
What’s really interesting when comparing these two opposing ranges is the confluence between potential long entries and targets to close shorts. The “continuation levels” area for a long aligns perfectly with the “fakeout level” for a short, and the “Optimal Trade Entry” for a long aligns perfectly with these downside extension targets for a short. This confluence between opposing ranges can make predictions based on fibonacci retracements very effective. As always, be prepared for anything and stay frosty.
Ethereum (ETHUSD) (Weekly / 12-hour Comparison)
Ethereum has been mostly stagnant since it hit its $2,041 high on February 19th, and we see some similarities with BTC when comparing these timeframes and opposing fibonacci retracements side-by-side.
On the weekly chart, we see support stepped in perfectly at the “continuation levels”, and on the 12-hour chart, price is stalling at the “Optimal Trade Entry” Zone for a short.
The confluence between these two ranges are not quite as strong, but we do see alignment between the short “fake out level” and a retest of the recent low at the long “continuation levels”. If Bitcoin does see a shakeout, it’s likely that Ethereum would see a harsher one with ...
To keep reading, please go to the original article at: