Hold on to short position at $37.7 and wait for trend to develop3 scenarios for
1. (Up case) Up then Correction
- BTC can touch 40k (some technical shows that btc full reach for this wave is 48k, but I think it’s too stretch, especially now the approval window is behind us). After reaching this upper level, correction is due to happen
- BTC cycle also suggest that 28th Nov should be the peak for this current wave
2. (Flat case) Consolidate then Up
- BTC consolidate here around 37k - 35k above the MA200 and break out of the pattern to the upside
- 34k area is Point of Control (POC) shown in Visual Range Volume Profile (I couldn’t show on tradingview here as I haven’t update my account yet, but you can see on Binance BTC chart, enable Visual Range Volume Profile technical indicator)
- Volume Profile formed a B shape (one at 26k - 27K, one at 34k) so technically speaking it’s an uptrend continuous indicator
- In the case of ranging, the POC will act like a magnet so price can go to 34k, also the longer the price is trading within the value area the higher the chance it will visit the Value Area Low (VHL) at 33k
3. (Down case) Down then Up
- If broken below the area above, price will aim for area of 30k- 31k which has been retested. Below that is 25k - 26k but I doubt we ever get to here by Jan24, as people are still speculating on ETF approval
- Once bounce from the support level, price will carry on its bullish wave
What I think will happen
I hope for an early correction because I think it would be more healthy for the next wave, also because I’m biased that I want to buy into BTC at lower range
But I think Scenario 2 is more likely (happening now)
If Scenario 3 happen it will be a quick up and then down
