Why BTC is struggling to break higher ☄️
The VPVR measures volume traded at certain price levels. Higher levels of price volume naturally cause support and resistance as lots of positions have their entry points around this price.
We can see BTC has met resistance, multiple times if we look at lower timeframes, around this level. Does this mean we will have a pullback? Possibly but we need to look at more data. Usually pullbacks happen quite dramatically and on relief rallies are usually led by smart money, BTC holders for 1 year+. However, the number of older holders is going up day by day, showing they have conviction. This was reflected in the very small pullback we had for the previous push higher.
It is also worth noting their is still high leverage in the market, which could cause a short squeeze.
What does this mean?
- Smart money is not selling but buying
- The people to usually push the price lower are not selling
- BTC is slowly moving into very strong resistance
- If we break above we could see very strong price moves due to short squeeze
What am I doing?
I have moved another 5% of stable coins into ETH and MATIC. I now stand at 65% crypto and 35% stable coins. I am waiting for a bit more of a pullback to 42k to enter another 5-10%. If we break higher I will not buy into FOMO but wait until we do get a significant pullback - it will come.
I will also be looking for long trades on low timeframes on BTC if we break 50k.
I will keep you posted :)
We can see BTC has met resistance, multiple times if we look at lower timeframes, around this level. Does this mean we will have a pullback? Possibly but we need to look at more data. Usually pullbacks happen quite dramatically and on relief rallies are usually led by smart money, BTC holders for 1 year+. However, the number of older holders is going up day by day, showing they have conviction. This was reflected in the very small pullback we had for the previous push higher.
It is also worth noting their is still high leverage in the market, which could cause a short squeeze.
What does this mean?
- Smart money is not selling but buying
- The people to usually push the price lower are not selling
- BTC is slowly moving into very strong resistance
- If we break above we could see very strong price moves due to short squeeze
What am I doing?
I have moved another 5% of stable coins into ETH and MATIC. I now stand at 65% crypto and 35% stable coins. I am waiting for a bit more of a pullback to 42k to enter another 5-10%. If we break higher I will not buy into FOMO but wait until we do get a significant pullback - it will come.
I will also be looking for long trades on low timeframes on BTC if we break 50k.
I will keep you posted :)