BITCOIN analysis for week of 12/24/23 - WITH ORDERFLOW ANALYSIS
The previous week's analysis went to hell in a handbag fairly quick. Which is alright, not every single week's analysis will pan out, and one of the hallmarks of trading that many of you will learn is to be able to learn from what went wrong.
LINK TO SEE THE CURRENT ORDERFLOW HEATMAP ON BITCOIN FROM MY ANALYSIS:
imgur.com/a/xFcYELy
Couple of things to note for next week's analysis. I am using Bookmap software to analyze order flow, and based on what I'm seeing on orderflow, I can match those clues up with the chart to see if I am able to piece together a broader picture.
In short, you cannot have one without the other. Charting by itself is dead, we live in a technologically ruled world, without order information, you cannot make a complete coherent analysis anymore. The big fish trade with algorithms, the key is to recognize their patterns that is visually represented on historical order flow and be able to make key observations about what levels the moves are at.
1) Based on order flow analysis, I am currently concluding that the 43900 - 44000 area is likely a good candidate for a reversal.
2) The orderflow analysis is confirmed by chart analysis that that price area will break above TWO separate channels, and is in an area where previous kill zones have trapped traders before.
3) It is also an area where the weekly 1st STD DEV upper band comes into play.
All three of these data points lead me to believe there is a likely long trap being set up in that area.
My current theory leads me to believe that price will challenge the recent bottom, and likely even crossing below it. There are some indicators already in play that is showing us that that lower level around 43300 has been consistently tested and defended by market makers.
Therefore I am currently of the theory that price will likely bounce around the trading range we have created since the 20th, for now. This can change during the week, because I expect a heavy shakeout to be a scenario for the upper and lower ranges of the trading range we are currently in.
LINK TO SEE THE CURRENT ORDERFLOW HEATMAP ON BITCOIN FROM MY ANALYSIS:
imgur.com/a/xFcYELy
Couple of things to note for next week's analysis. I am using Bookmap software to analyze order flow, and based on what I'm seeing on orderflow, I can match those clues up with the chart to see if I am able to piece together a broader picture.
In short, you cannot have one without the other. Charting by itself is dead, we live in a technologically ruled world, without order information, you cannot make a complete coherent analysis anymore. The big fish trade with algorithms, the key is to recognize their patterns that is visually represented on historical order flow and be able to make key observations about what levels the moves are at.
1) Based on order flow analysis, I am currently concluding that the 43900 - 44000 area is likely a good candidate for a reversal.
2) The orderflow analysis is confirmed by chart analysis that that price area will break above TWO separate channels, and is in an area where previous kill zones have trapped traders before.
3) It is also an area where the weekly 1st STD DEV upper band comes into play.
All three of these data points lead me to believe there is a likely long trap being set up in that area.
My current theory leads me to believe that price will challenge the recent bottom, and likely even crossing below it. There are some indicators already in play that is showing us that that lower level around 43300 has been consistently tested and defended by market makers.
Therefore I am currently of the theory that price will likely bounce around the trading range we have created since the 20th, for now. This can change during the week, because I expect a heavy shakeout to be a scenario for the upper and lower ranges of the trading range we are currently in.