BTC Support Levels
Updated
Just a simple look into logical support levels for BTC. Following a parabolic rise, BTC has forced us to use some older macro levels to determine support.
First, we'll start with the weekly:
Currently, BTC has found some nice macro support just above the first red weekly level at around 11.8k. Holding this level will be bullish in the short term, and likely have us testing the recent highs.
Below that, 11.3 - 11.4k has already been an area of interest on the lower time frame.
The most interesting support level, in my opinion, lies at ~10k. Not only is this round number psychological support, we can see some confluence of levels on the weekly and daily (posted below). This is an area in which I would be looking to go long for a continued macro rally.
That's not to say we couldn't easily drop further. In fact, on the higher time frames, crossing below 10k, would likely see us returning to the 8.5k- 9k area. These areas would also be prime candidates for long entries depending on the context of the drop. The 9k level would be an approx 1/3 correction from the highs made recently at 13.8k. In the prior bull market, 1/3 corrections were common, and an asset like BTC is more than capable of inciting enough volatility to bring us down to this level.
That being said, let's look at the daily:
Again, we see the 10k area is of interest. The monthly R1 pivot is sitting right there as well as the daily Bband midline. The midline has provided support in this recent bull run, and I would expect it to do so again. Keep in mind that this midline will likely increase in the coming days.
Zooming into the 4 hour:
We can see that we regained support on the Monthly R2 Pivot at 11.45k. It's possible that we are forming a trading range here, but is way too early to determine its bias. At the moment, we are essentially in a no-trade zone with respect to the 4 hour. The rejection at 12.4k was decent but not overly bearish. In fact, a pause was probably needed if the retracement is going to continue. The idea bullish scenario here would be to reclaim support of the BBand midline.
First, we'll start with the weekly:
Currently, BTC has found some nice macro support just above the first red weekly level at around 11.8k. Holding this level will be bullish in the short term, and likely have us testing the recent highs.
Below that, 11.3 - 11.4k has already been an area of interest on the lower time frame.
The most interesting support level, in my opinion, lies at ~10k. Not only is this round number psychological support, we can see some confluence of levels on the weekly and daily (posted below). This is an area in which I would be looking to go long for a continued macro rally.
That's not to say we couldn't easily drop further. In fact, on the higher time frames, crossing below 10k, would likely see us returning to the 8.5k- 9k area. These areas would also be prime candidates for long entries depending on the context of the drop. The 9k level would be an approx 1/3 correction from the highs made recently at 13.8k. In the prior bull market, 1/3 corrections were common, and an asset like BTC is more than capable of inciting enough volatility to bring us down to this level.
That being said, let's look at the daily:
Again, we see the 10k area is of interest. The monthly R1 pivot is sitting right there as well as the daily Bband midline. The midline has provided support in this recent bull run, and I would expect it to do so again. Keep in mind that this midline will likely increase in the coming days.
Zooming into the 4 hour:
We can see that we regained support on the Monthly R2 Pivot at 11.45k. It's possible that we are forming a trading range here, but is way too early to determine its bias. At the moment, we are essentially in a no-trade zone with respect to the 4 hour. The rejection at 12.4k was decent but not overly bearish. In fact, a pause was probably needed if the retracement is going to continue. The idea bullish scenario here would be to reclaim support of the BBand midline.
Trade closed: target reached
hope those support levels were helpful...
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