Trading Bitcoin in a Parabolic Curve — Possible $30,000 Top
There are so many macroeconomic events that are creating a bullish vaccum for BTC USD right now:
- Weakening world fiat currencies
- Trade tensions
- Federal Reserve Interest Rates
- S&P500 looking toppy .
- Economic sanctions.
- Yield curves on bonds moving upwards.
From the parabolic chart, it appears that we are currently breaking out of the Base 3, which is one of the fastest acceleration points for an asset.
In 2017, we saw multiple 40% corrections in Bitcoin during its ascent to $20,000, but for 2019, we haven’t had a single correction over 30% so far.
This can be attributed to a lot of reasons, but a parabolic trend is where there are no sellers left as price rises due to supply/demand and it creates a vacuum where there is only buying pressure.
You will see slight profit taking at different levels as each person/institution will have a set target range for them to exit an asset, but new buyers will typically step in.
Based on Google trends, there is barely an uptick in retail interest so far, which means that this is being driven by institutional interest and not so much retail.
I derived $30,000 top from my Fibonacci levels that I created over a year ago, which lines up with the 29.034 Canfield Fibonacci level. I had previously been anticipating a cycle high at the 46.979 fibonacci level at $52,000, which may be the cycle top.
So to be clear, I am not claiming that $30,000 will be the cycle top for now, but will be a strong resistance level where we should see some strong profit taking and a potential parabolic break to the downside towards the .618 fibonacci retracement level around $13,500.
If you don’t remember those fibonacci zones, I derived them from the following equations beyond the 4.23 to track long term assets in an uptrend.
• 6.854 = Any number in the sequence / 3rd number prior in the sequence
• 11.090 = 1.6185 = Any Number / 4th number prior in the sequence
• 17.944 = 1.6186 = Any Number / 5th number prior in in the sequence
• 29.034 = 1.6187 = Any number /6th number prior in the sequence
• 46.979 = 1.6188 = Any number / 7th number prior in the sequence
• 76.013 = 1.6189 = Any number / 8th number prior in the sequence
• 122.992 = 1.61810 = Any number / 9th 2.88% number prior in the sequence.
This also coincides with an intermediate cycle top that corresponds to Positive Crypto’s golden ratio multilpier as well that Crypto Hamster took and made into an indicator on Trading View (just search Golden Multipler)
Strategy:
Ideally, you stay in a long position until the trend breaks and if you are looking to short, I would do it with 1X at the resistance levels outlined above to create a ‘synthetic cash’ position to hedge yourself with a stop loss above each resistance point. RESISTANCE ZONES: $16,800 and $28000-$30000.
Let me know what you think of my work and if you want to support me, give this idea a like and leave a comment below.
Source: jacobcanfield
