Bitcoin
It held 38.2% back to the 11/21/22 low at 25,700. This is the short term swing point. The rally from it could only go 38.2% back up to the 7/13/23 high at 27,915. It is not a good sign that a smaller range 38.2% level stops a rally from a much bigger range, however you will still have to watch for a trade below 25,700 that hits the 200 day average at 25,165, or the 24,815 major Gann square and closes back above 25,700, as this can send it sharply higher. A failure to hold this area can send it to 61.8% at 21,875.
The Chart below is natural support and resistance levels that are based on W.D.Gann's "Law of Vibration".
- Mr Gann viewed stocks as live electrons, atoms, and molecules which hold persistently to their own individuality in response to the fundamental Law of Vibration. Science teaches 'that an original impulse of any kind finally resolves itself into periodic or rhythmical motion, also just as the pendulum returns again in its swing, just as the moon returns in its orbit, just as the advancing year ever brings the rise or spring, so do the properties of the elements periodically recur as the weight of the atoms rises'.
Each level can be used as support and then resistance once taken out and the reverse when starting as resistance. These levels will be good until the end of each contract. These levels are the yellow horizontal lines.
The chart below is for short term support and resistance. We also post them on the Daily charts for the long term levels.
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FULL RISK DISCLOSURE: Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Commission Rule 4.41(b)(1)(I) hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. Past performance is not necessarily indicative of future results.
On the date of publication, Nick Ehrenberg did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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