This is a weekly chart ( BTCUSDT ) on BINANCE. I’ve set up price/time lines which represent potential resistance and/or support points.
The Blue lines are 4 boxes (with the 1×1 price/time equation) attached together to create a giant .
The yellow lines represent potential pivotal points which follow the 50% or 0.5 price/time points. I created a massive aligned with the assumption the price we will make an ATH (at least before the 12th of June 2013) and that we are not heading down into a long endless bear market. The box begins on the 12th of April and ends on the 12th of June 2023.
The boxes are created from squaring the chart from the extreme low to the extreme high, the process can be a little tricky but once down can provide a very helpful framework to evaluate price which i’ll get to in detail. I’ve also set retracement points nd extension points. We can see 4 potential pivotal points the 0.5 retracement point ($34318.07) The current ATH ($64854) the 0.5 extension ($95389.94) and a 1.0 extension ($125925.87).
The 0.5 retracement has proved to be very strong support, since the initial crash in may, we have closed above this point every week, this week would be the 8th if the price makes it.
We can see the top line is showing strong resistance we’ve closed below this point every week except once on the 7th of june but it was only a brief close and most of the price action was below this line.
We can see the bottom line has yet to be touched, the longer we move sideways the more shallow the drop will be.
As we continue to travel in this range, the price begins to converge to the 0.5 time point which is the halfway point of the first box (comprising the combined four boxes).
At this point would be around the 25th of October. The price will likely make a meaningful move before this point but this would mark a potential new phase of price action.
The blue boxes mark strong pivotal points in price in which breakouts either up or down can occur.
The price is locked in this range for now until the end of October at the very most. Before this point keeping an eye on these three points (a,b and c) will assess where the price is going, if we stay above the (c) line we can expect price to gradually creep up until the end of October, at this point we would have established a very solid and most likely will be heading up. We’ve dropped from the (b) line but if we start retesting this in the next week or two we could see a much sooner breakout reaching the current ATH much fairly quickly. Once we break the ATH the next major resistance point would be $95389 and then $125925.
Let me know what you guys think, is this the time for patience and long-term thinking or jump ship and hope the price drops to buy back cheaper. IMO we’re in for more sideways movement and it could be very risky to sell and reenter at a lower price. What do you guys think would love to hear your comments?
*Disclaimer: Not professional advice, just opinion, please do your own research before investing any of your money.