I was curious about the current price 46.6 - 47K. I've been trading this range for about 4 hours now and price seems to have found temporary support here. I've been trading it all day so I was curious what is special about this narrow range we seem to have gravitated to. I pulled out the volume profile and analyzed the buying profile from the bottom of the last correction until now. This isnt the first time I've found that the volume profile tool can provide accurate areas of support and resistance. I use this tool quite a bit, but have to admit I didnt think I'd need it today :(
What it also says is that if price drops too much below 46.5K, that mass of buyers will be in a loss and could join future panic selling. This level is critical to hold based on the profile tool. Fibonacci's are helpful, but they are hard to link to the minds of sellers. The volume profile shows how much was bought and where, and there's an easy link to market psychology from there.
This helps confirm my strategy that if price slips from here, I wont have my fingers crossed....they'll be on the "quickly liquidate" button. I'll leave my BTC positions and ETH positions and dump my alts which will leave me about 20% in. Hoping it doesnt come to that. I prefer a double top.
What it also says is that if price drops too much below 46.5K, that mass of buyers will be in a loss and could join future panic selling. This level is critical to hold based on the profile tool. Fibonacci's are helpful, but they are hard to link to the minds of sellers. The volume profile shows how much was bought and where, and there's an easy link to market psychology from there.
This helps confirm my strategy that if price slips from here, I wont have my fingers crossed....they'll be on the "quickly liquidate" button. I'll leave my BTC positions and ETH positions and dump my alts which will leave me about 20% in. Hoping it doesnt come to that. I prefer a double top.