COINBASE:BTCUSD

Since few month we are in the downtrend. So let’s ask TA whether this could change in near time.
Let’s find out what “Fan principle” and “Retracement levels” are saying right now.

1. Fan principle (orange): “Breaking of the third trend line (T3) signals the reversal of a main trend (T1)”. So we can start to be little more optimistic, we are on the third breakthrough (blue 4 to 5). But it’s not optimal to lean on only one signal.

OK, let’s supplement observation with additional information. Let’s try to find another theory, which can help us.
We can observe that breaking of the third wave losts inertia (~ 47,5k USD). In such circumstanceces Retracement level could be good address for asking:

2. Retracement levels (green): “Prices often abolish about half the current trend (~42k USD) , after which the trend is continued. The minimum correction is one third(~44k USD) , and the maximum – two-thirds (41k USD) of prior price movement”

What I’m gonna do?
I believe that it could be little breakthrough and we can go for north, then 40-42k USD seems good area to get in.

Ps. Be aware it’s just my assessment (I’m not pro). It’s also possible that we can return for the beginning: ~ 30k USD and only then bounce back.

Good luck 🙂