The recent price collapse in Bitcoin may be the start of a much bigger price trend in the Cryptos. The support level near $9000 has been breached and the current resistance arc, see the MAGENTA Fibonacci Price Amplitude Arcs on these charts, are clearly acting as a major contracting price resistance level. Our research suggests price will find support near $7900, then $5571, then possibly just above $2000.
The Fibonacci Price Amplitude Arcs are a proprietary modeling tool we use to measure and track how price may react based on previous price swings. They are the visual deployment of two unique theories: Fibonacci price theory and Tesla’s Mechanical Resonance theory. The basis behind our thinking when we created this tool was that Fibonacci price theory suggests that all price movement is related and structured to previous price movements and that Tesla’s theory that everything we touch, see and know to exist is the result of ENERGY suggested to us that ENERGY may be one of the most important components in understanding price movement.
Energy is typically measured in Volts and Amps. We adopted a different approach to this thinking, we used Sound structures and energy as the basis for our proprietary analysis: attack, intensity, decay, sustainability, amplitude and frequency, as well as pressure and velocity.
In Physics, sound energy is a form of energy. Sound is a mechanical wave and as such consists physically in oscillatory elastic compression and in oscillatory displacement of fluid. Therefore, the medium acts as a storage for both potential and kinetic energy.
source : Wikipedia
Imagine trying to unlock the concept that Time and Price are a fluid environment where energy (price movement over time) creates a lasting and dynamic method of storing energy, displacing energy and developing kinetic energy that could interact and displace future price trends, rotations, swings?
How in the world would you attempt to identify or study these types of price energy waves to try to develop a system of successfully using these tools for trading and analysis?
You'd do exactly what we did – apply your best researchers to the task and attempt to validate your research across various platforms, symbols and sets of data.
Bitcoin Fibonacci Price Amplitude Arcs
These Fibonacci Price Amplitude Arcs, as we call them, are what we believe to be the hidden price energy wave that exists behind the linear constructs of the charts we are used to seeing. They work by creating breakouts and channels that price must react to. In this case, the Magenta price arc is acting as a contracting ceiling for the price (resistance) and price should continue to stay below the MAGENTA price arc until it reaches a point where enough energy exists to break through that arc.
This weekly Bitcoin chart provides a better example of how our Fibonacci Price Amplitude arcs are deployed. In this example, we can clearly see the bottom that formed in late 2018 and the peak that formed in late June 2019. We can see two HEAVY Fibonacci Price Amplitude Arcs: one MAGENTA and the other one GREEN. These are what we believe are the major amplitude arc levels. The others are minor levels.
Each peak or valley on this chart sets up a new Price Amplitude energy pattern. Some are more relevant than others in term of how price will react to them. All of them are important to understand and to help us relate to how price may move in the future, yet we try to stick with the most important Fibonacci Price Amplitude Arcs when we share charts with our readers. You’ve probably seen some of our other research charts with lots of arcs and lines drawn all over them – those are part of our research team’s work to dig into the hidden energy layer that exists behind price activity on every chart.
This weekly Bitcoin chart suggests that price will continue to attempt to test various support levels while staying within the Magenta price arc. We believe the $5571 level is the likely target at this time.
Don’t chase this move lower in Cryptos. Wait for the bottom to setup and form before looking for the next move higher. If price breaks below $5571, then we could see a target level near $2100 very quickly. If price is unable to generate enough energy to break the Magenta price arc, time will eventually push price into the next arc series where a broader price range/rotation may be in the future.