Has Gamestop "squozen"?
Good day Hiveians!
Join me in analyzing the crypto markets!
In January Gamestop got all the hype when prices soared to almost 500$, which is amazing considering that the shares had a little over 2$ in value some months prior to that.
Since then people have lost a lot of money who bought in at the ATH and unfortunately sold at a much lower price. When one browses through /wsb on reddit it is clear that the majority of people there are amateur traders and have been buying stocks for the first time in their lives. Without experience (and only memes to live on, but yeah they are really good! :) and having bought into such a volatile stock it's probably safe to say that many people's nerves are on the line... But in crypto world we are used to these kinds of swings. Although 100% and -70% daily swings are even uncommon here... Talking about stress!
So having looked at the GME chart and actually having bought several shares (just for the fun), I think I can share a simple insight into what happened and what could happen in the near future from a TA perspective.
Let's have a quick look! This is the chart over the last couple of months:
As you can see prices have exploded since the low in April last year.
There is a very obvious fractal in this chart which has so far predicted the next top very accurately by a method called fibonacci retracement. This works by marking the high and low of a sub wave and then applying fibonacci ratios to give potential future price targets. The fractals are marked in orange here:
Applying the technique gives us remarkably accurate price targets. The peak of 75$ and the correction to 55$ in the first sub wave gives us the target of about 150$. This peak was madejust several days later. The correction of that sib wave to about 60$ then gives us a target of 470$, which is spot on to the real price and ATH! Not sure if I have ever seen such a successful example of applying fibonaccios... So what comes next?
We can then apply the technique to the bigger wave and if we do that which runs from 470$ to about 40$, it gives us a price target of about 1900$! Will that happen? Who knows... but this is where I got my sell orders :)
As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!
⛅🌦🌧🌦🌧🌨☁🌩🌦⛅🌧☁🌤🌥🌪🌧🌨🌩⛅🌦☁🌤🌥🌤⛅🌤⛅🌦⛅
Check out the Love The Clouds Community if you share the love for clouds!
⛅🌦🌧🌦🌧🌨☁🌩🌦⛅🌧☁🌤🌥🌪🌧🌨🌩⛅🌦☁🌤🌥🌤⛅🌤⛅🌦⛅
