We are back looking at the Bitcoin market and noticing that Bitcoin is hanging out on a ledge and we are waiting to see if it is going to fall off or keep building structure to continue a march upward.
Looking at the chart on the left hand side you are looking at the 15 minute time frame and the 4 hour time frame on the right. Price action has seemed to level out on the POC (point of control) of this volume zone. This means that this is the level that the market is finding as fair value.
But as we all know, Bitcoin likes to bounce or rip through fair value at times. We can see that the price is finding some serious support at the current levels. The Fibonacci retracement measurement shows that Bitcoin is finding support on the .382 support level. This indicator is amazing at finding support and resistance zones that traders can use as a measurement to base their moves. Finding support on this level is bullish. If we can hold this level and continue to rise, Bitcoin can see 19K again before we know it.
But... playing Bear's advocate here, if we make drop down to lower levels, we could see more downside. The big tell will be if we do drop further, that we hold the 'golden pocket' of the .5 and .618 levels. Bitcoin really does like this zone, and if it holds and we bounce, then it's going to be some good times in the short to mid-term.
All we can do is take the data as it comes in and base our probabilities on this data so we can make the best decision for our trade.
What are your plans? Are you buying, selling, or holding Bitcoin at these levels?
Nothing said is financial advice.
This is for educational and recreational purposes only!
Stay safe in these volatile markets and don’t get rekt!
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