We are in a natural market retrace. All electronic widely traded assets, securities, cryptos etc., move in fractal waves; 5 waves with trend and ABC waves against trend. These fractal wave patterns were originally discovered by RN Elliott during the 1920s and 1930s where he made amazing market top and bottom calls considering there were no computers and all graphs had to be charted and done by hand on Graph and Logarithmic Graph paper.
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The key to these fractal waves is they respect previous support and resistance levels and if surging higher above previous All Time Highs there is a strong correlation between fractal waves and Fibonacci Extensions and then Fibonacci Retracement levels as evidenced by my posts and illustrated in the EW/Fibonacci link above.
Moving averages are targets that most of the herd of traders respect as you can see by today's BTC Tradingview Chart with the Coinbase BTC/USD data feed shown.
Markets test and retest support and resistance levels especially major moving averages - markets go out of balance and come back to balance reflecting the tango between Long Term Investors and Short Term Traders looking to profit on the mathematically calculable moves up and down.
As you can see in todays Chart BTC/USD surged to a new ATH above the green 9 bar MA finishing the 5th wave with trend up. Then an ABC correction against trend began to typically .618 Golden Ratio - moves retesting then tested with wicks the 20 Blue MA and is bouncing back above the 20 MA now as support... When selling pressure exceeds buying the next MA we will test is the Yellow 50 MA then back up to the 20. This 50 DMA also corresponds to the .618 Golden Ratio retrace of Wave 5 and the previous Wave 3 swing high for three target confirmations.
The .618 50 MA Target range then becomes the terminus of the Larger Degree Wave Two of which Waves 1 to 5 shown equal the larger Fractal Wave 1. When the larger Wave 2 terminates we move into an impulsing longest Wave 3 Up towards the high Fibonacci Extensions which being important points for the modern herd of traders show significant recognition and support and resistance respect.
In a massive correction this pattern of testing, pulling back and retesting applies to the 100 DMA and 200DMA and Market Psychology typically reflects if we close above or below a Major Moving Average respected by the Herd (9, 20, 50, 200) then we test or retest the next MA.
Hope this helps illustrate the fractal nature of markets and innate Human buying and selling emotion and psychology which is self evident in the 7/24 continuously traded high volume and emotional FUD and FOMO driven global Bitcoin markets.
