Where Bitcoin is heading?

 This week, Bitcoin, the mother of volatility has shown its roller coaster nature: In less than seven days, we've seen the digital currency move from the low $30,000s to come within striking distance of $42,000… and back down to the low $30,000s before stabilizing in the $34,000 range. 

Has Bitcoin done its correction that I have been expecting lately? I don't think so. I believe more downsize is likely still in the works!

Although there is no strict rule on how a stock or a tradable asset must follow a certain path, more often than not, they tend to follow some pattern. Here is what I'm thinking in terms of where Bitcoin may likely head in the next few weeks.  

This is a Bitcoin chart with blue lines plugged, which are so-called Fibonacci retracement levels.  You can use the Fibonaccis with just about everything you can trade – stocks, currencies, oil, coffee – name it. They're perfect for working out intermediate- and long-term support levels and buying opportunities – places the prices are likely to stop on the way down.

So here is some important interpretation for Bitcoin: it has just hit an all-time  high of $40,000 recently – that's the zero point for the FRL. By rounding up, its first retracement level will be roughly 38%, i.e. around $28,000, then at 50% retracement at $24,000, and finally at 61% at $21,000.

For a weak correction, the 38% retracement is the first line as support. If not held up, then the 50% retracement will come into play, which is usually a rather strong support if the trend is still in a good play. Given how much hype has already been built into Bitcoin at the moment, I think there is a good chance that it may not stop at the $28000 level on its leg down. Rather we may see it back down towards $24000 before the correction is finally done. This is how I'm looking at Bitcoin at the moment. I definitely don't want to chase it now for its seemingly powerful rebound. This is likely a typical bull trap during the topping process. This is often the area most FOMOs will get killed. Be mindful if you love chasing!!

By the way, if you don't know yet, there is another brand new social media, SafeChat, available now. Per SafeChat,  it is a secure & safe social platform run to a high moral standard—they put people first. Secure Chat - They have end-to-end encrypted conversations to protect users. - One to one video and audio call with end-to-end encryption. - Password protection available for every group conversation. It basically combines all the major functionalities of social media into one powerful platform and most importantly it is much safer than the junky social media like WC, FB or Twitter that are deteriorating morally faster and faster.

I have registered as 深山老林 at SafeChat and I will set up a new chat group and gradually shift our major social media interactions to SC instead of WC. If you'd like to join my group, sign up a free SC account easily and search for me and connect me as friends.  For friends sharing  similar conservatism views, let's come together to form a better chatting group that won't be constantly disturbed and harassed by radical censorship!