Bitcoin Facing All-Time-Highs - What Will Happen NEXT?
In this technical analysis, I will walk you through the recent price action on Bitcoin. Starting with how our first test of supply at $13,600, led to the break through of the final supply zone level at $16,000. This was our catalyst to propel price up to new all-time-highs shortly after.
1. First of all, let's do a quick recap of the up-trend. In my last few ideas on BTC, you can see that I have been closely following this exponential trend since the very beginning of around 3K-6K. Definitely one of the more beautiful bullish trends and higher timeframe price action plays that I've seen this year. Even now you might wonder, "but Sharing, the trend is bearish on the hourly timeframes, is this the the larger institutions selling off coins?". Well, I see it slightly different. Look what happened exactly at the moment that price reached 19.8k and pulled back to test our new weekly support and fresh Daily Demand zone..
2. There was a MASSIVE response to $19,800 being reached, with an immediate 10% drop.. But wait... That then lead to clear rejection of our Daily Demand zone at $17,700 where bulls instantly are still showing signs of potential interest and rejection of the downside movement. To me, this confirms that people are looking at this technical setup with bullish intent.
It's the same with horizontal support and resistance levels. You can use them to bet on reversals, but when there is large volume, all-time-highs, and major announcements going on, as we are experiencing now, we often see very strong responses in the market to these levels!
3. The beauty of this drop in value is that we finally have some strong support levels ahead of us again, and that's important because these are levels that we can work with on our charts, that are solid. I am not a big fan of charting rising prices in no mans land, because it leads to more dependency on technical and fundamental indications. While I mostly appreciate horizontal zones, or levels with a strong history if you will (I do occasionally use other indicators, not saying they are bad. Just supporting the case of price action first).
4. I charted the first Major horizontal zone here on the 2 week timeframe, and major liquidity levels labeled as SS for "Sweet Spots". I imagine over the following days, I will publish a few more ideas with newly created zones. If we want the price of BTC to stay high, our eyes need to be on this current daily demand zone.
If this zone holds, I would say we can go in for a nice long trade again, where I'm only looking for shorter term opportunities. If it breaks, have patience. The whales are planning a long term game here.
Trading is just mapping risk-reward set-ups over a long period of time to get the statistics working in your favor. In this case if you have good risk-reward, it doesn't matter too much if you're going long or short near this region. Because of volume, I suggest betting on the long reversal as close as possible to the support zone. Since the price already dropped over 10%, it looks like the bears have slowed down their momentum.
Follow me for free, consistent, expert updates, with clear explanations and charts.
Please like this post to support Sharing Profit.
- Sharing Profit
--------------------------------------------------------------
Disclaimer!
This post does not provide financial advice. It is for educational purposes only!
1. First of all, let's do a quick recap of the up-trend. In my last few ideas on BTC, you can see that I have been closely following this exponential trend since the very beginning of around 3K-6K. Definitely one of the more beautiful bullish trends and higher timeframe price action plays that I've seen this year. Even now you might wonder, "but Sharing, the trend is bearish on the hourly timeframes, is this the the larger institutions selling off coins?". Well, I see it slightly different. Look what happened exactly at the moment that price reached 19.8k and pulled back to test our new weekly support and fresh Daily Demand zone..
2. There was a MASSIVE response to $19,800 being reached, with an immediate 10% drop.. But wait... That then lead to clear rejection of our Daily Demand zone at $17,700 where bulls instantly are still showing signs of potential interest and rejection of the downside movement. To me, this confirms that people are looking at this technical setup with bullish intent.
It's the same with horizontal support and resistance levels. You can use them to bet on reversals, but when there is large volume, all-time-highs, and major announcements going on, as we are experiencing now, we often see very strong responses in the market to these levels!
3. The beauty of this drop in value is that we finally have some strong support levels ahead of us again, and that's important because these are levels that we can work with on our charts, that are solid. I am not a big fan of charting rising prices in no mans land, because it leads to more dependency on technical and fundamental indications. While I mostly appreciate horizontal zones, or levels with a strong history if you will (I do occasionally use other indicators, not saying they are bad. Just supporting the case of price action first).
4. I charted the first Major horizontal zone here on the 2 week timeframe, and major liquidity levels labeled as SS for "Sweet Spots". I imagine over the following days, I will publish a few more ideas with newly created zones. If we want the price of BTC to stay high, our eyes need to be on this current daily demand zone.
If this zone holds, I would say we can go in for a nice long trade again, where I'm only looking for shorter term opportunities. If it breaks, have patience. The whales are planning a long term game here.
Trading is just mapping risk-reward set-ups over a long period of time to get the statistics working in your favor. In this case if you have good risk-reward, it doesn't matter too much if you're going long or short near this region. Because of volume, I suggest betting on the long reversal as close as possible to the support zone. Since the price already dropped over 10%, it looks like the bears have slowed down their momentum.
Follow me for free, consistent, expert updates, with clear explanations and charts.
Please like this post to support Sharing Profit.
- Sharing Profit
--------------------------------------------------------------
Disclaimer!
This post does not provide financial advice. It is for educational purposes only!
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