BTC sold off and is hitting a crucial area. Many buyers of the breakout in DEC20 that kept adding to their positions might be under water. There is a 40% difference between price and the anchored VWAP from the DEC20 breakout. Supply has clearly exceed demand as of today. This is a good thing because now BTC is undervalued. This is an amazing opportunity for traders. I have marked some areas on the right side. These are nodes of high volume. As of now the pink box on the right volume profile at 30000 has held. How long will it hold and how long will price stay in the yellow box between 30000 and 40000. I have no idea. This area of high volume could be an interesting area for new big money to come into the market. Down below on the RSI indicator I have marked when would be a great opportunity to buy. If this area holds and we don't stay here long, when the RSI crosses 30, I think the probability is in our favor that we start our ascent to test 49000.
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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.