Bitcoin looking a bit bearish short-term
While the confluent support level we're right now is holding, and higher lows have been made [in lieu of higher highs], the VPZO has struggled to find bullishness as we continue to test this support. The price has tried a downtrend line with some gusto, and been rejected; while simultaneously under a bear Kumo on this short timeframe [30m]. Considering the recent highs formed a bear div on higher timeframes, the bearish PA over the last couple of days stands to validate that divergence being a factor in the PA. On a hype level, with Bakkt looking at further delays and increased US Gov't scrutiny there is not much to gas up the hype train for more supply.
Bulls need to attack that purple box, or at least avoid a lower low in rather short order to avoid bearish continuation to new lows. If the bears can push the price back below this confluence, which includes an S/R flip, then shorts are likely going to pile on at the site of BTC staggering like this after a bounce.
Here, I'll take some time to address a common myth: Support is grows stronger as its tested, while resistance weakens in the same circumstance: The fact is that support that seems to get 'stronger' is already just strong support, there's a lot of demand in that region and as bears try to penetrate it they can't, and eventually tire or run out of supply to keep the price suppressed. If a region of support or resistance is just reallt thick with orders, it won't break and efforts to do so may be persistent; but will ultimately fail. So instead of clinging to this false adage, just analyze the price action at various levels of S/R to discern how strong or weak it actually is. A volume profile is an excellent tool for this.
Not advice, make your own choices so you can learn from your own experience firsthand.
Bulls need to attack that purple box, or at least avoid a lower low in rather short order to avoid bearish continuation to new lows. If the bears can push the price back below this confluence, which includes an S/R flip, then shorts are likely going to pile on at the site of BTC staggering like this after a bounce.
Here, I'll take some time to address a common myth: Support is grows stronger as its tested, while resistance weakens in the same circumstance: The fact is that support that seems to get 'stronger' is already just strong support, there's a lot of demand in that region and as bears try to penetrate it they can't, and eventually tire or run out of supply to keep the price suppressed. If a region of support or resistance is just reallt thick with orders, it won't break and efforts to do so may be persistent; but will ultimately fail. So instead of clinging to this false adage, just analyze the price action at various levels of S/R to discern how strong or weak it actually is. A volume profile is an excellent tool for this.
Not advice, make your own choices so you can learn from your own experience firsthand.
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