In BULL markets resistance levels turns into support, and in BEAR markets support levels turns into resistance. Earlier last week in my BTC vs. SHORT commentary on 12/18 I had displayed on the chart that $3,600 had turned from support to resistance. We had been pounding the table all month saying $3,600 was a key level. What we saw was large buying volume on 12/19 take that level out with ease. **I did warn that buying above this level could be a ‘False break-out’ or ‘break-out trap’. What we didn’t see was the intra-day reversal on large volume that would have been an obvious tell BTC’s selloff was not over. Instead, we saw a 3-day rally that has now reversed back to this key level. If we are indeed near the bottom of this BEAR market, we should see this $3,600 level hold and become SUPPORT. Like what I mentioned yesterday, FOMO, fear of missing out, market participants who think they “missed the bottom” at $3,150 will start to come in and buy to help support these levels.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.