Hello fellow coiners, and no coiners alike, hope you are having a wonderful day.
Today we are looking at this large ascending channel model, with the additional VPVR graphic.
It is, technically, an ascending wedge as the top (green) trend line is at a slightly tighter angle than the bottom (red) support line. Either way , we have once again fallen into the “danger zone”, which you can see has been an area of heavy support/resistance going back for months. This area also seems to mark the times in which the market has been the most uncertain. Hence why I’ve labeled it the danger zone. There is a lot of fear in the market right now, understandably, crypto has surged for months and needs to cool. Many are now expecting a move lower. Maybe to 50k, 42k. This is a definite possibility, now more than ever. But there is also indications this may not happen. We broke below an area of massive support on the VPVR (yellow and red box) and immediately went down to the 50k area. While this was not a heavy test of the next VPVR support area at 48k, it was a wick close to the area. As we have seen in this bull run, a quick wick down to the VPVR support levels is sometimes all the chance we get at an inexpensive buy opportunity, and then Bitcoin doesn’t give that second chance. For those who don’t know, the VPVR is essentially showing the price levels where people are most interested in Bitcoin. We are now squeezed right between massive resistance on the VPVR and the bottom (red) support line of the ascending wedge/channel.
We are still putting in higher highs and lower lows on the weekly, and until that changes I remain bullish . I expect to see Bitcoin crawl up the red trend line, squeeze past then VPVR resistance , and consolidate within the danger zone for the next few days. If the red trend line is broken to the downside then we can almost certainly expect to visit levels near 48-50k to really test that VPVR support. Even if we consolidate inside the Danger zone for a few weeks, we will still be putting in higher highs and higher lows and possibly even making new all time highs. Once we break the danger zone to the down side I sound all the alarm bells.
I am not making leveraged trades on Bitcoin right now, this is simply a long in the mid term and not an idea for scalp trading .
Stay safe out there.
Today we are looking at this large ascending channel model, with the additional VPVR graphic.
It is, technically, an ascending wedge as the top (green) trend line is at a slightly tighter angle than the bottom (red) support line. Either way , we have once again fallen into the “danger zone”, which you can see has been an area of heavy support/resistance going back for months. This area also seems to mark the times in which the market has been the most uncertain. Hence why I’ve labeled it the danger zone. There is a lot of fear in the market right now, understandably, crypto has surged for months and needs to cool. Many are now expecting a move lower. Maybe to 50k, 42k. This is a definite possibility, now more than ever. But there is also indications this may not happen. We broke below an area of massive support on the VPVR (yellow and red box) and immediately went down to the 50k area. While this was not a heavy test of the next VPVR support area at 48k, it was a wick close to the area. As we have seen in this bull run, a quick wick down to the VPVR support levels is sometimes all the chance we get at an inexpensive buy opportunity, and then Bitcoin doesn’t give that second chance. For those who don’t know, the VPVR is essentially showing the price levels where people are most interested in Bitcoin. We are now squeezed right between massive resistance on the VPVR and the bottom (red) support line of the ascending wedge/channel.
We are still putting in higher highs and lower lows on the weekly, and until that changes I remain bullish . I expect to see Bitcoin crawl up the red trend line, squeeze past then VPVR resistance , and consolidate within the danger zone for the next few days. If the red trend line is broken to the downside then we can almost certainly expect to visit levels near 48-50k to really test that VPVR support. Even if we consolidate inside the Danger zone for a few weeks, we will still be putting in higher highs and higher lows and possibly even making new all time highs. Once we break the danger zone to the down side I sound all the alarm bells.
I am not making leveraged trades on Bitcoin right now, this is simply a long in the mid term and not an idea for scalp trading .
Stay safe out there.