Based on the power law channel we still haven’t entered a bearish market as seen in 2018 and 2020.
Based on the volume profile POC for the 2018 run up, the percentage between peak volume and the bear cycle bottom was 164%.
Using this same theory, we can apply the same percentage to the current bull cycle volume profile POC to equate a rough bear market bottom...
During the initial LRC pump, theres was a rotation area where strong buyers added to their longs, and the price continued to drive upwards from that zone - see left hand most volume profile.
This zone should have acted as an area of strong support as price settled down from the ATH, however instead price dived through this zone to a lower level.
This support...
Theoretically we have already spent support in the low $30K's for BTC which resulted in the second peak to $69K.
Support (generally) doesnt hold on the second test, and develops into a new resistance zone.
We haven't tested support in the $20's properly against volume profile - see peaks on the right hand side.
Will we see a sub $20K BTC?
Short sellers adding to their short?
Volume profile up to the drop on the left.
Volume profile of the whole visible range on the right so you can see how it's developed.
Looks to be losing momentum, good short?
