Same bullish bias, but the $26000 can be a great resistance
The movement on the higher time frame where we can see there are some conditions we need to focus which it can easily affecting the movement on the next upside movement for bitcoin.
We personally believe that the price of the bitcoin will eventually shows us a great promise with the next upside spike to at least the area near $30000 region. However, there is a huge resistance the price needs to breach during this upside movement and if the price fails to break it, current movement will only be a usual dead cat bounce with a lot of bullish trap condition factor in.
Look at the yellow region which is the area around $26000. This is the unique area where we can see the previous downside spike occurred on May 12th, 2022 and the previous downside push ended exactly right at this area which it is now forming a wick. This structure is also known as the liquidation zone when the dominant position are getting liquidated on the exact same time.
On May 12th, 2022 condition, we can see that the dominant position was short sell which was getting liquidated and forming an instant buying momentum. Similar with the condition that has occurred on May 12th, it could apply the previous liquidation structure on current condition which the price is now trending very close to the $26000 level.
Another indication that this area can be a strong resistance is that the yellow zone is having an alignment with the previous broken support trend line which is now acting as a resistance. This is a great resistance factor that is combined with the yellow resistance zone. You can imagine how strong this resistance is.
Beside all of the concerns we mentioned on the previous paragraph, we are still sticking to the previous plan which our original target is at $30000 as the potential top of this movement. It's not without reason because the test to the .382 Fibonacci retracement level is having the same fractal with previous downside pattern.
The original bias is still the same with the target of $30000 but we must be ready for the rejection at the mentioned resistance of $26000.
We personally believe that the price of the bitcoin will eventually shows us a great promise with the next upside spike to at least the area near $30000 region. However, there is a huge resistance the price needs to breach during this upside movement and if the price fails to break it, current movement will only be a usual dead cat bounce with a lot of bullish trap condition factor in.
Look at the yellow region which is the area around $26000. This is the unique area where we can see the previous downside spike occurred on May 12th, 2022 and the previous downside push ended exactly right at this area which it is now forming a wick. This structure is also known as the liquidation zone when the dominant position are getting liquidated on the exact same time.
On May 12th, 2022 condition, we can see that the dominant position was short sell which was getting liquidated and forming an instant buying momentum. Similar with the condition that has occurred on May 12th, it could apply the previous liquidation structure on current condition which the price is now trending very close to the $26000 level.
Another indication that this area can be a strong resistance is that the yellow zone is having an alignment with the previous broken support trend line which is now acting as a resistance. This is a great resistance factor that is combined with the yellow resistance zone. You can imagine how strong this resistance is.
Beside all of the concerns we mentioned on the previous paragraph, we are still sticking to the previous plan which our original target is at $30000 as the potential top of this movement. It's not without reason because the test to the .382 Fibonacci retracement level is having the same fractal with previous downside pattern.
The original bias is still the same with the target of $30000 but we must be ready for the rejection at the mentioned resistance of $26000.
