This week we've seen another important bottom in December as prices decided to drop just below the November deep.
On my parabolic chart above, which has a target of 100k$ in September 2021, we've just about touched the parabolic support line. Which, of course, is promising. A better, more close-up view can be seen below.
In addition, we are at a rather important, weekly support level.
This whole correction seems to be moving in threes. With this new December low we've just completed another threewave move (purple).
Based on that you may expect either another three wave sideways followed by a three wave down (red dotted lines), or a three wave (possibly a five wave) up as in the dotted green lines.
Given that the bitcoin fear and greed index is still at extreme fear levels, there is a preference for the bullish scenario.
Much smarter people than me are analyzing bitcoin prices. Some of the most interesting ones are collected here:
https://digitalik.net/btc/
One of the gems I found there is the BEAM indicator, with the BEAM bands. The green verticals indicate when you buy, the red ones when you sell.
In the corresponding page at Digitalik.net, there is a link to the website of the BEAM developer where he explains how it actually works. I just look at the chart and see it fits wonderfully.
Also, the BEAM bands predict that by summer 2021 the red resistance band should be at approximately 100k to 150k. Which is good enough for me.
