Bitcoin why buy the pullback, (Support $32k - $32500)
Updated
Like and Subscribe(Thanks in advance). Today Bitcoin chart analysis shows strong selloff going on since the past couple of days, which has finally made contact with a strong support of our rising channel.
The current support which served as a resistance in the past (32K -32500)is now acting as a strong sign of support(we see the buy pressure showing off around 32500.
but for the trend to continue its ride to the upside we need a clear change in market structure either a double bottom or a higher low market structure (like a higher low printing on the 1hr chart)
Here is what I mean by past accumulation zone
It is very likely we see a retest of the support to confirm the demand or buy pressure on that support.
If 1hr chart prints this higher low market structure that will be our entry point to target 45K to 46500 measured move which also happen to be the tip of our channel.
Here is a question worth answering:
What if it crosses below the last low then what?
The chances of this happening will most likely lead to a double bottom in my opinion and from what I see is that it is still under the retest of the support of the 32K zone which could lead to a stop loss hunt by market makers before the major bull run begins
As long as the trendline still hold, there is accumulation zone just below the support in the past which most likely not allow price to just dive straight through it,
so it is likely going to find it tough to cross the 32k support because of past accumulation zone on this support,
Instead we could see more accumulation on the support(sideways moves for sometime) then boom to the upside!
The current support which served as a resistance in the past (32K -32500)is now acting as a strong sign of support(we see the buy pressure showing off around 32500.
but for the trend to continue its ride to the upside we need a clear change in market structure either a double bottom or a higher low market structure (like a higher low printing on the 1hr chart)
Here is what I mean by past accumulation zone
It is very likely we see a retest of the support to confirm the demand or buy pressure on that support.
If 1hr chart prints this higher low market structure that will be our entry point to target 45K to 46500 measured move which also happen to be the tip of our channel.
Here is a question worth answering:
What if it crosses below the last low then what?
The chances of this happening will most likely lead to a double bottom in my opinion and from what I see is that it is still under the retest of the support of the 32K zone which could lead to a stop loss hunt by market makers before the major bull run begins
As long as the trendline still hold, there is accumulation zone just below the support in the past which most likely not allow price to just dive straight through it,
so it is likely going to find it tough to cross the 32k support because of past accumulation zone on this support,
Instead we could see more accumulation on the support(sideways moves for sometime) then boom to the upside!
Note
The bears have successfully broken the 32k support on the 4hrs chart , the next closest support we have to watch right now is 28500 support zone Note
we can see the sideways movement happening right now, meaning there is a clear struggle and if the buyers demand over powers the sellers price will come back into the channel meaning a fake out
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