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The rocket in the Bitcoin chart is launched and the moon and Mars are waiting. At least that is the opinion of many investors, with the hope of a new all time high. The PayPal-News seems to be the decisive factor and the euphoria knows no bounds. From a technical and analytical point of view, however, Bitcoin is directly confronted with several major Crypto Engine platform resistances. One of these resistances will be examined in more detail in this article – the Fibonacci levels.
The Bitcoin Chart of Coinbase is examined on a weekly, daily and 4-hour basis. As in previous reports, the Moving Average 200 is shown, as this is a very prominent support and resistance line.
Fibonacci and stock prices?
The Fibonacci sequence of numbers may be familiar to some from mathematics. However, this phenomenon is also relevant in nature and even on the stock market. For example, mathematical calculations can be used to determine price levels, up to where the price can correct after an impulse movement. If these levels are reached, they act as support or resistance. Special attention is paid to the Golden Pocket – the range between 0.618 and 0.65 Fibonacci levels. A nice example is the Bitcoin Chart in the weekly view. The zone up to just over $14,000 was also mentioned in our last report as a strong resistance zone.
The moon does not shine far away any more. Or let’s say the All Time High first. But let’s take a look at the last reaction of the price when it ran into the Golden Pocket region. The course did not run to the Moon, nor to Mars, but pressed down again and the Moving Average 200 had to support the closing price.
Is there any information for the Bitcoin Chart in the Daily?
Resistance, correction phases and support are something quite natural – in life as well as on the stock market. No price can rise indefinitely and profit taking by others is inevitable. Since the beginning of October, we have seen a price rise on the daily chart that has had virtually no relevant correction. Higher, further, faster, moon, mars. Greed eliminates many a wise decision. But what if the Bitcoin price turns at this point and swings south, against its own long position?
A support zone, which has formed above the Moving Average 200, gives the course current support. But consider the Golden Pocket directly above the price from the weekly chart. Bitcoin is being squeezed tighter and tighter from both sides. The support is getting closer and the resistance is right above it. The price must decide for one side, up or down, long or short. We do not know which one this will be. Observing the course of the Bitcoin chart and deriving wise decisions from the past – we can influence that.
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And what is the short-term outlook now?
This can possibly be answered with the 4-hour chart. In this time frame it doesn’t look too bad for Bitcoin. Two support zones are below the rising price and it seems that it wants to make a new breakout attempt to the top. Whether this will be sustainable – we do not know yet. With spontaneous, ill-considered long entries on the 4-hour chart, one can currently take a lot of losses – just think of the Golden Pocket from the superior week on the Bitcoin chart!
Well, whether Bitcoin will reach the moon or Mars in the near future, or whether it will “only” attack the All Time High is still written in the stars. What we can act on is what we see and not what we wish for.