BTC/USD and its crucial support and resistance area
Looking at this Daily BTC/USD Bitstamp chart from around Oct 2020 to 29th July 2023 (today) we can see a few obvious chart patterns that BTC is still in on this daily chart.
1) Ichimoku Y-Wave Pattern AKA a Broadening Wedge Pattern/Megaphone Pattern
2) Ascending Channel Pattern
3) Descending Channel Pattern
4) Rising Wedge Pattern
We can clearly see the crucial range that BTC must break ABOVE and turn into strong support, which is around $28,709 to $32,360 as highlighted by the channel with horizontal dotted lines with yellow shading.
This area has been both strong support and resistance quite a few times over the years.
As a Strong Support range:
Sat 2nd Jan 2021 to Mon 1st Feb 2021
Wed 19th May 2021 to Fri 23rd Jul 2021
As a Strong Resistance range:
Mon 9th May 2022 to Sun 12th Jun 2022
Monday 20th Mar 2023 to Monday 8th May 2023
Mon 29th May 2023 (1day)
Wednesday 21st Jun 2023 to 29th Just 2023 (as of typing this)
Using LuxAlgo Buyside & Sellside Liquidity indicator, we can see that BTC is slowly filling up its Liquidity Void from around $29,611 to its bottom at $27,051. As we can see from the history of the chart, quite a few of Liquidity Voids do end up getting filled back up even after a long period of year and a half. We can also see that a Buyside Liquidity line is located almost exactly on the top of our important support/resistance area.
Using the Visible Range Volume Profile (VRVP) in its Delta mode, we can see what the Traded Volume difference was on each of the Volume Profile Bars for this entire charts visible range. Note that the Volume Area Up is Blue and Volume Area Down is Yellow.
Here is a closer look at this 1 day chart.
Note that BTC is still below its Bollinger Bands Middle Band Basis, the Lower Band is still pointing downwards and the Upper Band looks like it may curve downwards.
I have added a Fixed Range Volume Profile (FRVP) indicator from Thur 15th Jun 2023 to Sat 29th July 2023 (as of typing this). The FRVP is also in its Delta mode and you can clearly see the Traded Volume differences for each Bar. Note that again the Volume Area Up is Blue and Volume Area Down is Yellow.
Looking at the Chaikin Money Flow Indicator (CMF) we can see that the CMF Line is still in the Distribution Zone under its 0.00 Base Line and note that it is still Below its Least Squares Moving Average (LSMA) indicator. Note that the LSMA has curved upwards at the moment.
Looking at the Relative Strength Index (RSI) we can see that momentum has dropped and the RSI Line is still below its 9 Period EMA line. Using the Bollinger Bands on the RSI we can see that the RSI now has little bit of room to move downwards and a lot of room to move upwards before becoming over extended/overbought/oversold. It really is good practice to be on the lookout for any Convergence and Divergence with the RSI and the Price.
The key takeaway from this post, the Resistance Area from around $28,709 to $32,360 is very, very important! Note we also have a Buyside Liquidity Line located almost directly on $32,360.
For the Upside:
A successful Daily Candle CLOSE above the $32,360 level and any successful re-test as strong support will be a good sign of continued positive momentum to come.
For the Downside:
Failure to CLOSE a Daily Candle above the $32,360 level will be a good sign of continued sideways to eventual negative momentum.
Anyway, i hope this post is helpful.
1) Ichimoku Y-Wave Pattern AKA a Broadening Wedge Pattern/Megaphone Pattern
2) Ascending Channel Pattern
3) Descending Channel Pattern
4) Rising Wedge Pattern
We can clearly see the crucial range that BTC must break ABOVE and turn into strong support, which is around $28,709 to $32,360 as highlighted by the channel with horizontal dotted lines with yellow shading.
This area has been both strong support and resistance quite a few times over the years.
As a Strong Support range:
Sat 2nd Jan 2021 to Mon 1st Feb 2021
Wed 19th May 2021 to Fri 23rd Jul 2021
As a Strong Resistance range:
Mon 9th May 2022 to Sun 12th Jun 2022
Monday 20th Mar 2023 to Monday 8th May 2023
Mon 29th May 2023 (1day)
Wednesday 21st Jun 2023 to 29th Just 2023 (as of typing this)
Using LuxAlgo Buyside & Sellside Liquidity indicator, we can see that BTC is slowly filling up its Liquidity Void from around $29,611 to its bottom at $27,051. As we can see from the history of the chart, quite a few of Liquidity Voids do end up getting filled back up even after a long period of year and a half. We can also see that a Buyside Liquidity line is located almost exactly on the top of our important support/resistance area.
Using the Visible Range Volume Profile (VRVP) in its Delta mode, we can see what the Traded Volume difference was on each of the Volume Profile Bars for this entire charts visible range. Note that the Volume Area Up is Blue and Volume Area Down is Yellow.
Here is a closer look at this 1 day chart.
Note that BTC is still below its Bollinger Bands Middle Band Basis, the Lower Band is still pointing downwards and the Upper Band looks like it may curve downwards.
I have added a Fixed Range Volume Profile (FRVP) indicator from Thur 15th Jun 2023 to Sat 29th July 2023 (as of typing this). The FRVP is also in its Delta mode and you can clearly see the Traded Volume differences for each Bar. Note that again the Volume Area Up is Blue and Volume Area Down is Yellow.
Looking at the Chaikin Money Flow Indicator (CMF) we can see that the CMF Line is still in the Distribution Zone under its 0.00 Base Line and note that it is still Below its Least Squares Moving Average (LSMA) indicator. Note that the LSMA has curved upwards at the moment.
Looking at the Relative Strength Index (RSI) we can see that momentum has dropped and the RSI Line is still below its 9 Period EMA line. Using the Bollinger Bands on the RSI we can see that the RSI now has little bit of room to move downwards and a lot of room to move upwards before becoming over extended/overbought/oversold. It really is good practice to be on the lookout for any Convergence and Divergence with the RSI and the Price.
The key takeaway from this post, the Resistance Area from around $28,709 to $32,360 is very, very important! Note we also have a Buyside Liquidity Line located almost directly on $32,360.
For the Upside:
A successful Daily Candle CLOSE above the $32,360 level and any successful re-test as strong support will be a good sign of continued positive momentum to come.
For the Downside:
Failure to CLOSE a Daily Candle above the $32,360 level will be a good sign of continued sideways to eventual negative momentum.
Anyway, i hope this post is helpful.
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