Bitcoin Arrives at the Next Swing Zone (Oct 18): A Major Move with 6 Months Long Trend Ahead

Throughout the year, I have been following just one Fibonacci time zone prediction that worked very well. Whenever BTC arrived closer to these zones, something has to happen for some reasons:

(a) Previous trend was losing steam
(b) Extended cosolidation

June 24 was the best example though when BTC closed below support (6K) & recovered in the following day. Thus, the swing zone prediction worked very well and the declining trend put a rally that gave significant profits. The rally failed an till Oct 18, the zone held the support & never closed above 6135 (on GDAX).

If you see my previous analysis, whenever BTC lands on the support, I kept on finding evidences of volume/momentum divergences.

What do we see now is that BTC holds the support with regular and hidden divergences against the volume and momentum indicators. Recent events, drop on Oct 11 to 6135 & breakout on Oct 15 of 6800 both turned fake.

Here is a chart annotating the four fake drops, which held the support and now the fresh support level is at 6135 on GDAX. The triangular consolidation remains intact despite the fake drops of Oct 11.

If BTC puts a rally here and breaks the resistance i.e. 6800 with volume, that will confirm that the next swing zone will be for bulls to party. However, we need to be cautious that BTC may have gained enough momentum to drop again from a key psychological level such as 10K. If that does not happen, BTC will have to break that level with volume to put a strong trend.

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