I believe there are three different scenarios about bitcoin.
Scenario 1: Cluster of support: bitcoin is in a cluster of supports area now. In the first scenario, Bitcoin should return from the support cluster area and continue to move upwards. In this case, the current downward movement of bitcoin should be considered a pullback to the broken resistance. Of course, I am not in favor of this scenario. In my opinion, Bitcoin broke up the resistance with a low volume. Therefore breakup can be fake. On the other hand, if this scenario is correct, it would contradict Wyckoff's theory, and be different from the peaks that have occurred in recent years.
Scenario 2: based on accumulation theory: As you know, Bitcoin recently had a range area. The main question is, what kind of range area did we face? Accumulation or redistribution? If the past move was accumulation, the price has not yet pullback to the creek, and in the last pullback, price reenters into the range area. Therefore if price pullback and the continuation the uptrend from the creek area, Will complement the accumulation and we should expect the start of an uptrend.
Scenario 3: If bitcoin reenters the range area, the past range area should be a redistribution area, and I expect a drop in the price.
Disclaimer
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.
Disclaimer
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.