In this section we will discuss what a price action order block is and how it is currently relevant to Bitcoin’s price action.
An Order Block is a trade location that has a cluster of price action, creating a liquidity pool. Once price action expands from the region, it automatically becomes support or resistance – hence a block,
This area once penetrated will act as a range, causing a period of price action oscillation. The Order Block can be dissected into three sections, the high (resistance), the low (support) and the middle (equilibrium). Whichever region price action breaks from will lead to a continuation or a reversal in the overall trend.
In essence, Bitcoin can remain trading in the Order Block before until decisive bottoming or continuation structures are developed.