XBTUSD entering a strong support zone on the 1d
We have seen 3 successive red 1d candles and will almost certainly see a 4th after rejecting 10k. But, we are coming up to a historically strong support and consolidation zone around 8.9k. Sell pressure also seems to be waning. It should not have been surprising that we retraced the volume gap between 9.2k and 8.9k. We are also still trading above the 200 EMA and are sitting on the 100 EMA on the 1d.
Bitcoin is still in a locally bullish trend and I don't believe that the last few days of price action has invalidated it. It can be viewed as a healthy retrace. I also do not believe there is yet sufficient evidence to suggest that we are repeating 2014 history and fractals. The market is very different to what it was 4 years ago.
In summary, I would expect us to take another leg down to 8.9k and potentially overshoot to 8.8-8.7k and then bounce back up to 9.3-9.4k. If those levels don't hold I believe we will further retrace the volume gap and to the next strong support levels starting around 8.4k.
Bitcoin is still in a locally bullish trend and I don't believe that the last few days of price action has invalidated it. It can be viewed as a healthy retrace. I also do not believe there is yet sufficient evidence to suggest that we are repeating 2014 history and fractals. The market is very different to what it was 4 years ago.
In summary, I would expect us to take another leg down to 8.9k and potentially overshoot to 8.8-8.7k and then bounce back up to 9.3-9.4k. If those levels don't hold I believe we will further retrace the volume gap and to the next strong support levels starting around 8.4k.
Note
Note
I didn't notice this bearish divergence on the OBV indicator until it was pointed out to me, but I found it interesting. It also looks like the Stoch is coiling up and ready to break out.Note
More hindsight bearish divs on the 4h.
Note
Well, we bounced back up to the 9.3-9.4k zone as expected but without overshooting to 8.8-8.7k. Again, there is support here but BTC is losing steam with declining volume. It is difficult to ascertain whether or not this is accumulation or distribution, although I am partial towards the former. In either case, I expect us to range here for a day or two before we see a move, which I expect will be up.
Note
Ok, we hit 8.7k, time for the bounce.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.