We believe this current Triple Fibonacci Arc pattern may be present in other symbols given how the US stock markets have reversed recently.  It may be that these critical price inflection points operate across major indexes like tides in the ocean work across multiple ports and harbors.  When a big or critical Fibonacci Price Amplitude Arc hits, we believe it results in a broad market reaction.

If this breakdown in Bitcoin Continues, the $8k level would be the next downside price target.  Beyond that, possibly $7k and maybe as low as $6k.  We will have to see how Bitcoin reacts to this Triple Fibonacci Price Amplitude Arc and how deep price corrects at this time.  It is very likely that Bitcoin price levels will fall below the May through July levels, near $9k in an attempt to identify new support levels.

We also believe Gold and Silver will move lower as a price collapse in Bitcoin suggests general market fear it hitting all global assets.  The US Dollar may attempt to form support as well because of this move.  As other assets decline in valuation levels, some primary currency will likely be viewed as the strongest alternative asset – this will likely be the US Dollar.  Eventually, after what we believe could be a moderate downtrend in Gold and Silver, precious metals will begin to move dramatically higher as foreign currency and Bitcoin prices continue to fall.  Capital will always seek out the best, least risky, investment solutions at times of chaos and risk.  If Bitcoin becomes highly volatile and continues to fall, then alternate assets present very real opportunities.

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Chris Vermeulen
Chief Market Strategist
Technical Traders Ltd.

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