Bitcoin is once again in a consolidation pattern with high volume after a fast move on Sunday likely caused by a cascade of stops being hit after the long run up from the recent lows.
The growing volume suggests that we will likely see BTCUSD make a break higher again in the near future.
Another important consideration is the volume profile. This suggests that there is a new range for BTC with strong support at $3700, strong resistance at $4200, and little support or resistance in between. We have now retested support at the bottom of this range.
Due to the growing volume across exchanges, it is becoming ever more likely that we have seen the bottom of this bear market.
Nasdaq, Bakkt, The Square Inc . Cash App and possibly the VanEck Bitcoin ETF are all in the process of creating products that will tie up ever greater amounts of BTC in their systems. It is possible that the market will front-run these developments and the associated demand.
One other thing worth mentioning is that there is even less resistance (than in the range mentioned above) in the price range between $4200 and $4800. This means that if BTC breaks through the $4200 level there could be a swift move back to $4800. At the moment I expect it to stall out on the next wave closer to $4590.
The growing volume suggests that we will likely see BTCUSD make a break higher again in the near future.
Another important consideration is the volume profile. This suggests that there is a new range for BTC with strong support at $3700, strong resistance at $4200, and little support or resistance in between. We have now retested support at the bottom of this range.
Due to the growing volume across exchanges, it is becoming ever more likely that we have seen the bottom of this bear market.
Nasdaq, Bakkt, The Square Inc . Cash App and possibly the VanEck Bitcoin ETF are all in the process of creating products that will tie up ever greater amounts of BTC in their systems. It is possible that the market will front-run these developments and the associated demand.
One other thing worth mentioning is that there is even less resistance (than in the range mentioned above) in the price range between $4200 and $4800. This means that if BTC breaks through the $4200 level there could be a swift move back to $4800. At the moment I expect it to stall out on the next wave closer to $4590.
