1/ Bitcoin in Consolidation
2/ Alphabet Make or Break?
3/ Energy Infrastructure Uptrend]
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1/
Bitcoin in Consolidation
Since hitting an all time high in March, Bitcoin has been consolidating within a descending channel. To understand how far the price might retrace, technicians utilize Fibonacci retracement levels to help identify important technical levels of support and resistance. Fibonacci levels are arrived at by first measuring a complete trend up or down, in this case the uptrend from the November 2022 low to the above mentioned highs. From there, a minimum of three levels can be calculated: a 38.20% retracement, a 50% and a 61.80% retracement of the measured move. I like to add the 23.60% as well as the 78.60%. These calculated levels then act as support on the way down for price, and once surpassed, they then act as resistance levels.
As shown here below, the price of Bitcoin is oscillating between the 23.60% ($60’000 area), currently acting as resistance, and the 38.20% ($51’500 area), currently acting as resistance:
The MACD is offering an additional technical piece of confirming evidence that the downtrend off the March 2024 peak remains in place, further downside potential appears technically viable, notwithstanding the expected interim rallies, until the price is able to break out of its descending channel.
2/
Alphabet Make or Break?
On this weekly chart, we can see how Alphabet (Google) set an interim high around $150 in November 2021. This level has been tested four times in late 2021 and one more time in early 2022. From that point onwards, the price action took two years to create a basing pattern before hitting that $150 resistance area again. It did so a few times during the first two months of this year. The price has always been rejected, until it gapped up in March. That whole price action created a Cup and Handle pattern:
From there, the price broke through the $150 resistance area and confirmed it as support level in April. The price is currently reverting down since the July high and has now closed back into the $150 support area.
Will Alphabet be able to bounce off that support or will the price break down to fill that $143-$146 gap? Technically, the longer a given level (support, resistance or trendline) has been in place, the more technically significant that level becomes.
3/
Energy Infrastructure Uptrend
Since its low in March 2020, MLPX (Global X MLP & Energy Infrastructure ETF) has made higher lows and higher highs which is the definition of an uptrend. (There were some lower highs during a consolidation phase between June 2022 and February 2024).
Based on Fibonacci extension measurements taken from the June 2022 to July 2022 decline (in other words, the highs and lows of the aforementioned consolidation period), we can project upside targets for MLPX.
MLPX has now lifted through its first Fibonacci price resistance at $52.20 and appears poised to address the next Fibonacci level at $62.33, notwithstanding interim pullbacks.
Offering additional technical evidence is the RSI, since it has alleviated from its oversold condition in April 2020, it has never gone below 35 and has been overbought (a sign of strength as it is evidence of buying interest) a few times, which denotes a bullish regime.
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Originally posted 9th September 2024
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