The Price Action Tool Ignored By 99% Of Traders (Andrews Pitchfork Stock Trading Strategy)
Bitcoin: Andrews Pitchfork Indicator Foreshadows 600% Rise
Bitcoin Gets Support Above 200-Week Moving Average.
Price has received important long-term support.
If the pattern continues repeating, it can be said that BTC has already bottomed out.
On March 13, Bitcoin reached a low of $ 3875, from where it immediately bounced and ended the week above the $ 5000 level.
Favorable closing levels reveal a support line that suggests a gradual rise in prices.
One of the tools used to assess long-term support and resistance levels, as well as to determine long-term dynamics, is the Andrews Pitchfork indicator, which can also be used to measure the growth rate in a certain period depending on the position of the indicator relative to the current price..
Well-known trader @ velvet888 posted on Twitter a chart of Bitcoin, which shows that the price bounced to the bottom of the support line of this indicator, which shows that the price has reached its lower border and will now rise smoothly.
The indicator indicates three important dates:
- The middle line runs from the April 2013 high at $ 160.
- The resistance line extends from the November 203 high of $ 1177, which marks the end of the BTC bull cycle.
- The support line extends from the August 2015 low of $ 224, where the low formed before the start of a new market cycle, which culminated in the renewal of all-time highs in December 2017.
So far, the price has touched all three lines only once. The resistance line was reached at the all-time high of $ 19.677. The quotes reached the middle line in June 2019 at a high of $ 13,834, and now BTC is right above the base of the support line.
Since the Andrews Pitchfork indicator has expanded to its borders, in the event of a new wave of price decline, its relevance may be lost. However, since we use closing prices instead of wicks in the analysis, the price is likely to close in the short term. under the support line, rather than significantly sink under it.
Also in the publication, the trader points to the 0.5% Fibonacci retracement level in the context of the Andrews Pitchfork indicator. This level reacted to prices three times between 2015 and 2017, after which bitcoin finally broke it. Then the growth rate accelerated significantly. The rise began after the rebound from the 200-week moving average and the indicator support line.
From the lower border, the price has risen by 600% in 616 days – an average of 1% per day.
Now the price is in the area of intersection of the moving average and the support line and starts a similar dynamics with similar growth rates.
If the scenario continues, then by November 2021 the quotes will reach a maximum at around $ 40,000.
At the same time, in the event of a rise above the lower limit, the growth rates may accelerate significantly, although it is too early to talk about this.
So, Bitcoin reached the support line of the long-term Pitchfork indicator and the 200-week moving average. If the previous scenario repeats, the price will move to a gradual increase and reach a high of $ 40,000 by November 2021.
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