Analysis
Conclusion
- Price action is following a similar pattern to 2017 where there was a hefty consolidation after an insane price surge
- Price this year had surged to over $4000 in a short time frame which resulted in an over 60% crash to $1600
- This crash was to the 61.8% fibonacci retracement, just as the previous 2017 cycle had crashed to
- Following the 2017, mid-cycle crash, price formed an ascending triangle which lasted around 6 months before continuing the final surge to end the bull market
- Similarities between current price action and 2017's price action leads me to believe that something similar may act here again
- Price has already crashed after failing to print a new ATH as it couldn't break through this resistance
- This may lead to further consolidation and ranging which could form some sort of ascending triangle like 2017
- Price action in 2017 did the same as it failed to break past the previous ATH at that point and retraced to the 61.8% level
- Thus, insinuating that we may crash further from here and all the way to the 61.8% local fibonacci level
Conclusion
- Price action has largely followed the 2017 mid-cycle consolidation phase before resuming the bull market
- As a result, this suggests that something similar may occur, but not guaranteed, meaning consolidation has yet to finish
- Short Term: Price is expected to crash further to, at most, the 61.8% fibonacci level
- Mid Term: Price is expected to consolidate in an ascending triangle like formation, winding before finally breaking the $4000 level and off to new ATH's
- Long Term: Price is expected to resume the bull market to new all-time highs in the region of $10,000+