Hi traders,
First of all, This is just a sequence of thought, not counted as a TA. I just wanted to review the situation.
In contrast to what we all expected for the price to be supported around 40k, The level is broken and the price will be likely going down a bit more. You can see from the chart that the yellow areas are the demand areas where many traders plan to buy there.
At that point, I dont know if whales allow price to fall there since the main aim is to make newbies sell and prevent relatively small-middle budget traders from buying the dip. That is why my main expectation is that it will bounce back above 32k. So I've drawn a fib levels, which shows a possible support level 34k.
Besides this, you see the volumes periodically increasing in the peaks as red columns. That also make me think that there were big sales, and some sellers may consider re-buy. For that case, I assume the "some" are relatively big companies that we know them as holding BTC or other currencies. So they also need to buy optimal price in average. In my opinion, Above the 0.5 level of fib is the optimal area for them to buy.
What to do next is to wait for them to buy. There may fakeouts or fake return signals. What I believe the most as a indicator is the volume. Always watch carefully for the volume. Not saying "A" green and high volume is a signal but saying increasing a "bunch" of green volume is a signal. Be careful when the RSI hit the its downtrend line.
Well, would be great to hear your thoughts^^.
Stay safe.
First of all, This is just a sequence of thought, not counted as a TA. I just wanted to review the situation.
In contrast to what we all expected for the price to be supported around 40k, The level is broken and the price will be likely going down a bit more. You can see from the chart that the yellow areas are the demand areas where many traders plan to buy there.
At that point, I dont know if whales allow price to fall there since the main aim is to make newbies sell and prevent relatively small-middle budget traders from buying the dip. That is why my main expectation is that it will bounce back above 32k. So I've drawn a fib levels, which shows a possible support level 34k.
Besides this, you see the volumes periodically increasing in the peaks as red columns. That also make me think that there were big sales, and some sellers may consider re-buy. For that case, I assume the "some" are relatively big companies that we know them as holding BTC or other currencies. So they also need to buy optimal price in average. In my opinion, Above the 0.5 level of fib is the optimal area for them to buy.
What to do next is to wait for them to buy. There may fakeouts or fake return signals. What I believe the most as a indicator is the volume. Always watch carefully for the volume. Not saying "A" green and high volume is a signal but saying increasing a "bunch" of green volume is a signal. Be careful when the RSI hit the its downtrend line.
Well, would be great to hear your thoughts^^.
Stay safe.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.