Macro consolidation S/R levels and breakout targets
Price remains in a macro consolidation pattern and has followed this fractal closely so far:
Now that we've potentially formed a local low, I've done some margin pressure analysis to help anticipate support/resistance levels. The levels are based on the following two assumptions:
(1) Leveraged longs are likely to have their liquidation points protected by the $39.5k local low support
(2) Leveraged shorts are likely to have their liquidation points protected by the $69k ATH resistance
I believe the strongest resistance will occur at the nearest level (~$46k), where we see:
(1) Consolidation S/R trendline
(2) 3x short pressure decreases
(3) 7x long pressure increases
(4) Midpoint of consolidation range
A break above the ~$52k resistance zone would appear quite bullish as it would invalidate bearish H&S scenarios.
Obviously, price won't remain in this range forever. If/when price breaks out, these are my next targets:
Upside: $79k
Downside: $34.5k
Now that we've potentially formed a local low, I've done some margin pressure analysis to help anticipate support/resistance levels. The levels are based on the following two assumptions:
(1) Leveraged longs are likely to have their liquidation points protected by the $39.5k local low support
(2) Leveraged shorts are likely to have their liquidation points protected by the $69k ATH resistance
I believe the strongest resistance will occur at the nearest level (~$46k), where we see:
(1) Consolidation S/R trendline
(2) 3x short pressure decreases
(3) 7x long pressure increases
(4) Midpoint of consolidation range
A break above the ~$52k resistance zone would appear quite bullish as it would invalidate bearish H&S scenarios.
Obviously, price won't remain in this range forever. If/when price breaks out, these are my next targets:
Upside: $79k
Downside: $34.5k
Long:
Short: