Bitcoin Market Recap: Bullish Monthly Close and a Range-Bound PABitcoin has witnessed a bullish monthly close after several months of bearish and sideways price action. This doesn’t mean that the 6-month trading range has been lost or that we are trading outside of it. Yesterday, we saw a critical level, the Value Area High of the 6-month range, which acted as initial resistance. Our old daily level of $22,393, which previously served as support, came back into play and provided support once again. The price then moved into the Value Area Low of the current range and has been ranging between the Value Area High and Point of Control ever since.
Today, a new daily Naked Point of Control was established at the $23,180 level. Initially acting as resistance, we got Swing Failure Pattern from the monthly level and were accepted back into the level. As of now, the price continues to range within the established boundaries.
Tomorrow is an important day for the financial markets with the Federal Open Market Committee (FOMC) interest rate hike meeting and high-tech earnings reports. These upcoming statistics have the potential to impact the value of Bitcoin and other cryptocurrencies. If the monthly level holds and acts as support, we can expect the price to reach the $25,211 level, where our first resistance can be a new daily level of $23,745.5. On the other hand, if the price fails to hold the monthly level, we can anticipate a sell-off with the first support level at $22,287. In the worst-case scenario, if there is no SFP, we expect the price to drop to single prints and reach between the $21,000 - $20,500 level. Tech stocks earning reports can also act as a catalyst for price action, with the following support level expected to be at the $19,000 zone where the Point of Control of the entire range is located.
In conclusion, my strategy will be to trade within the established range until a break occurs. I will carefully monitor the price action and market reactions after the FOMC meeting and earnings reports. As we have traded these levels multiple times, they may become weaker, so I will be cautious and avoid setting pre-set orders. I will only trade while keeping an eye on live order flow.
