As Bitcoin looks like it may be about to breakout the above $40,000 level I thought it might be a good time to look at potential upside targets, using Gann Fan targets on the higher time frames.
W.D. Gann, the creator of Gann fans, found the 45-degree angle to be the ideal angle for charting based on his theories regarding the balance of time and price.
Gann believed that if the price moved through one angle, it would likely head to the next angle.
This means if price breaks past one of his lines it will move to the next resistance line or will be rejected to the next Gann support line.
The distance between the lines may become so large that the indicator does not function for trading purposes since the price would need to move a considerable distance before reaching the next level/trading signal.
Gann fans should be used in conjunction with other technical indicators, so for the sake of ease, I will be combining the Ichimoku indicator and if needed, the RSI indicator.
The key weekly Gann Fan lines for Bitcoin are currently located at $39,600, $42,000 and $32,500.
Source: Tradingview.com
This perfectly aligns with my own technical analysis as key support and resistance to watch and to trade from.
Looking at Ethereum, and the key Gann fan lines to watch are found at $2,200 and $2,800.
Source: Tradingview.com
If we combine Ichimoku analysis the nearest form of weekly resistance is found at $2,250, while the RSI is approching its most overbought in 18-months.
Source: Tradingview.com
Interestingly, this also aligns with my analysis, especially the closest downside Gann line or support line, which comes in at $1,700.
Looking at slightly more exotic cryptos, and how they could compare, I am going to analyze AVAX, SOL, MATIC, STX, ARB , DyDx and OP.
AVAX has key Gann fan resistance at $29.00. Past this, nothing shows up until $52.00. Which is very interesting. Downside support kicks in around $18.00.
Source: Tradingview.com
Solana, a key crypto that has broken out strongly this year has Gann resistance $71.00, $140.00 and support at $39.00.
Please note, that much like AVAX, SOL stopped exactly reversed on the first Gann line recently.
Source: Tradingview.com
MATIC is exactly the same in terms of hitting Gann resistance recently and turning in the opposite direction.
Resistance comes in at $1.07, $1.22, $1.75, and support is at $0.66.
Source: Tradingview.com
STX looks like it could be headed much higher as it has no clear Gann line ahead, the nearest is at $1.06.Key support comes in at $0.64.
Source: Tradingview.com
ARB looks very bullish after just this week clearing a key Gann line. The next upcoming resistance is found at $1.41, which is somewhat above the best levels of the year.
Source: Tradingview.com
DYDX has upcoming resistance from $3.380 and support at $3.17, while OP has key resistance at $1.88 and $2.07, and key support at $1.63.
I think it is clear that if BTC does break cleaning through $40,000 then a fair few cryptos have unmet upside targets they still want to test.
