As we can see, BTC has been in a rising channel, and I find this channel valid for the main reason that the floor of the channel has produced serious price action for three times over the past year. Plus, the mid-line of the channel has witnessed significant price action, which makes the channel all the more valid. During the past weeks, BTC has seen stormy price action which has left many traders, even experienced traders, either on the sidelines or disappointed. Those crazy wicks, which could easily translate into deviations in lower timeframes, have trapped many, including me. Therefore, I have decided to give it a rest until the dust settles. However, some facts cannot be denied on the chart. The volume has leveled off at low levels in the weekly timeframe. Clusters of resistance, EMA50, the red trendline, and the 39K - 43K region, have proved insurmountable; in other words, price is showing a lot of weakness. Price hasn't had any respect for the clusters of support all the way down, including the 52K and 42K levels. To show strength on the market, liquidity is essential, and it is in short supply for BTC at the moment. This consolidation that is more tangible in lower timeframes holds the maximum pain for day-traders. One thing is quite clear: major liquidity is lying below 32K and 46K. Considering the signs of weakness price has been showing, I think it is highly likely that it dips to the 28K - 32K area. Is plunging lower possible? Of course! However, I give it a 50/50 chance. The price behavior around 28K - 32K can reveal more about the possibilities ahead.
If you find the idea of value, I would appreciate your support. Please share!
If you find the idea of value, I would appreciate your support. Please share!