BTC/USDT : What will happen if Bitcoin lose the lower supports ?
BTCUSDTBTCUSDHello everyone 😃
Before we start to discuss, I would be glad if you share your opinion on this post's comment section and hit the like button if you enjoyed it !
Recently we had the drop into 46K and now the options expiry has ended, The closed level was the maximum pain for both Bears and Bulls.
Now we got the pressure into the buy phase first and here we have the FIB's time zone as a pivot line ( this might be with 48Hours difference ).
So the majority will be with bulls and we have the expectation to reach our last gap's high and higher as our last leg up into 50K's channel !
📚 But the question is; What would happen if we take the wrong path and the pair drops below 46K ?
Let's have a quick look at the macro range that we're still in (that formed in Q2 across April and May - yes we're technically still in that range).
So basically if we lose 46K's level as support; We would get rejected more, But there is a dynamic S/R zone; Which is I'm predicting on for now !
📑 Let's firstly discuss more about ranges with 7 factors :
- Recent consolidation around mid-range broke to the upside. Recent price action swept the consolidation high and sold off, near a minor range level.
- We're currently within the daily demand zone nearing mid-range. This is a critical level of support.
- If we lose this level temporarily then reclaim, I'll interpret that as bullish and aim for mid 50k.
- If we lose this level and it flips to resistance, the lows marked 'x' come into play.
- If we get the bearish case, the next most relevant level I'm looking to trade is a sweep of the 4th December low. Similar to the price action in June.
- We can discuss lower after a failed rally off the 4th December low sweep
- So don't focus too much on the other lows until we need to. They are there as markers for now.
Now we got the full vision about our ranges; So let's head to our dynamic S/R zone !
There will be only one factor for our S/R zone :
- As we holding above this zone; Our bias is still suggesting bullish, But There can be a stop-hunt below and quick recovery above 49K.
There's a quick question, How this would happen ?
Let me give you an overview out of my LTF's chart :
As I mentioned on the chart above; There's a huge asks zone ( more than 1000BTCs ) appeared on Coinbase and FTX's spot orders !
And the bigger bids below our current three tapped support with more than 3000BTCs in 5 major exchanges !
So how I would play this chart ?
First of all we have to know that our 4H's S/R line almost got invalidated by current master candle, So There's only one affective level beside our Ask and Bids zones;
The Three tapped line located at $45650.
📊I want to add only two scenarios here :
- In any case of rejection from our higher asks zone; We'll have this opportunity to retest the lower three tapped line with a possible stop-hunt below; Cause the level, Has lose the pressure as we had almost three retests on it.
( Quick tip : There are two attempts of breakout on $45650; So the next attempt will be our 3rd breakout attempt and it'll give the chance to break below ! )
- In any case of breakout from our higher asks zone; We'll have the chance to sweep the higher 2D FVG and our formed gap at $53800.
📑 Conclusion :
As you can see, I'm playing this level to level for now.
Current range is from 47k - 56k.
-> Lose support, it flips to resistance, the new range becomes 38k (support) - 47k (resistance)
-> Reclaim resistance, we enter the range above, where 56k becomes support and 65k is resistance (with an important 'mid-range' level at 60k)
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Attention: this isn't financial advice we are just trying to help people on their own vision.
Have a good day!
Happy new is going to be called in 15Hours; So wish you all make more profits and gain more knowledge in next coming year 😉
Helical_Trades
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