BITCOIN re-entered the Parabolic Buy Zone. Is $6500 the bottom?

It is normal for Bitcoin traders to panic when the Digital Store of Value (as Bitcoin is often referred to) posts a significant decline. There will always be those to go as far as to call new bear cycles or even 0. Facts are facts and all of them still point out that Bitcoin remains at the start of a new Bull Cycle.

What has this sell-off produced? Simple. It is gradually re-balancing BTC back to is fair value after what has been a much more aggressive than expected start to the new Bull Cycle. This is what the Stock-to-Flow indicator is for (Blue line). This is a harmonization process that basically put BTC back to the Buy Zone (dashed green) of its historic Parabolic Channel. The 1W MA200 is always in Support and the Ichimoku Cloud is close to be squeezed to the point where the Bottom of this pull back is approaching.

There are good chances that this will be around $6500 based on the Supporting Line provided by the top of the previous time the Ichimoku was squeezed, similar to the 2015/ 2016 pattern.

Calling exact tops and bottoms on Bitcoin is difficult but all the above parameters offer a fairly good benchmark for long term traders and investors to work on.

After all there are numerous patterns that support the idea of a $6000 ish contact such as this idea from April 30th of the Bottom X 2 indicator:

or the Divergence and Convergence pattern behavior of Bitcoin’s Market Cycles:

Would you agree that BTCUSD’s current fair value is around the $6500? Please like, subscribe and share your comments, ideas and charts with me!

Tradingview link:

Add a comment