Bitcoin is in a clear downtrend on all timeframes, making lower lows and lower highs.
There is massive support, a bullish order block (31600), indicated by the green box. So far it has held, I have counted 5 tests.
The bounces from this region (31600) are getting weaker, especially as I consider the last high on 14-17 June (41000) a bull trap.
Every time price action tests this order block it weakens it (order volume gets thinner)
Volume profile (on every major exchange) indicates we are still in a distribution phase, and we are currently under the point of control. I will post this clearly in the comments section below.
Bitcoin volatility is at record lows. Historically bitcoin volatility will only stay at these levels for 1 week. (consider a volatility play, either buy volatility or put together an options strategy)
Volatility alone is a price neutral indicator, but all things considered, I say we are very likely to break to the downside within 1 week. (I would love to see another bull trap first, great shorting opportunity)
Given everything we are seeing across traditional markets, I would suggest: money (big profits) moved from bitcoin (crypto) into traditional markets (how many blow-off tops have we seen?!).
I will be keeping an eye on these markets, as I believe we will see a decent pullback across both crypto and traditional markets. At this point, I would be very bullish on Bitcoin and would say the bitcoin bull market is back on.
Right now I don't see many good trades. In my opinion: Shorting a bullish order block in the hopes of a breakdown is silly. I'm also not interested in longing the lows of the current range as volatility is so low.
Plan of attack, have limit longs set below the next major lower support. In this case, my level is 26750.
You can see the lower levels on the chart. 23555 then 19250 (everyone will be looking at similar levels)
The only other trade I would be interested in is: shorting bitcoin if a bull trap presents itself, take profit 1 will be back around the bullish order block. At this time I will consider holding some of this trade in the (likely) possibility that we break below this order block.
Like always, this outlook could change. But at the moment this is how I see the market.
Take care out there, trade safe,
Firestorm
Volume Profile:
You can see we failed to hold above the first point of control (37000-36000) therefore I conclude this was a continued distribution phase.
Now we are below the point of control (32870) of the current range.
Holding below this range indicates that we are still in distribution.
There is massive support, a bullish order block (31600), indicated by the green box. So far it has held, I have counted 5 tests.
The bounces from this region (31600) are getting weaker, especially as I consider the last high on 14-17 June (41000) a bull trap.
Every time price action tests this order block it weakens it (order volume gets thinner)
Volume profile (on every major exchange) indicates we are still in a distribution phase, and we are currently under the point of control. I will post this clearly in the comments section below.
Bitcoin volatility is at record lows. Historically bitcoin volatility will only stay at these levels for 1 week. (consider a volatility play, either buy volatility or put together an options strategy)
Volatility alone is a price neutral indicator, but all things considered, I say we are very likely to break to the downside within 1 week. (I would love to see another bull trap first, great shorting opportunity)
Given everything we are seeing across traditional markets, I would suggest: money (big profits) moved from bitcoin (crypto) into traditional markets (how many blow-off tops have we seen?!).
I will be keeping an eye on these markets, as I believe we will see a decent pullback across both crypto and traditional markets. At this point, I would be very bullish on Bitcoin and would say the bitcoin bull market is back on.
Right now I don't see many good trades. In my opinion: Shorting a bullish order block in the hopes of a breakdown is silly. I'm also not interested in longing the lows of the current range as volatility is so low.
Plan of attack, have limit longs set below the next major lower support. In this case, my level is 26750.
You can see the lower levels on the chart. 23555 then 19250 (everyone will be looking at similar levels)
The only other trade I would be interested in is: shorting bitcoin if a bull trap presents itself, take profit 1 will be back around the bullish order block. At this time I will consider holding some of this trade in the (likely) possibility that we break below this order block.
Like always, this outlook could change. But at the moment this is how I see the market.
Take care out there, trade safe,
Firestorm
Volume Profile:
Now we are below the point of control (32870) of the current range.
Holding below this range indicates that we are still in distribution.
Comment:
Volume profile for current range:
Looks like distribution to me, and now we are below the point of control.