BITCOIN BATTLE CONTINUES - KEY LEVELS APPROACHING!
Since the climactic action in Bitcoin in late June, price has entered a trading range and we have had the signs of Wyckoff distribution. We will need to see the confirmation of the weakness on the right hand side of the trading range. The characteristics of distribution and re-accumulation can be very similar.
A buying climax followed by an automatic reaction and the secondary test. The secondary test was on lighter volume indicating demand may have eased. We also couldn't reach the top of the trading range.
Price failed at $13,200 with supply entering the market. This level may be tested in the future if we do see a rally higher. Although we are making lower highs, an indication of the downtrend establishing.
Mid July we saw the bottom of the trading range tested and a minor sign of weakness. The price sliced through $10,000 on large volume and spread indicating large supply levels entering the market. We didn't see any follow through lower and this was the first sign that bitcoin may need to go sideways longer to build that cause for the next trend move. The first key level to watch is $10,520.30 - the top of the supply bar. This is the highest volume on the chart since the buying climax. Price has just moved through this area in the last 4 hours. The next few bars will be interesting.
18th July was the first sign of any demand entering the market and price rallied higher on nice volume and spread. We have seen this level defended on four occasions now. There are two ways to interpret this - the smart money is not allowing price to fall lower or they have not distributed fully yet and are doing this on the rallies higher. By 21st July the demand had eased and price had to fall to find further demand. We did see a spring of this area on July 29 and rallied strongly thereafter. Price rallied to $12,325 before stalling.
The second key level I want to talk about is $10,974.63 - this has been a flip area for support and resistance since the supply came in at this level back in early July and may be a crucial level moving forward. Look at how many times on the chart price has bounced higher or lower off it. Look at 5th August, it was the first time in a while that price could break through this level. It was no coincidence that there is a large range demand bar starting at that level. It is the area where demand overcame supply. Unfortunately there wasn't much follow through higher after this and price trending sideways before failing again.
In mid august the bottom of the trading range was tested and defended again.
We have certainly now built enough cause for a move. We need to see the confirmation on the right hand side of the chart. A large demand bar that takes out these levels and rallies higher or a large collapse and supply bar taking out the bottom of the trading range. Either way there is a nice moving coming and patience is the key.
So keep your eye on $10,974.63 in the near future!
A buying climax followed by an automatic reaction and the secondary test. The secondary test was on lighter volume indicating demand may have eased. We also couldn't reach the top of the trading range.
Price failed at $13,200 with supply entering the market. This level may be tested in the future if we do see a rally higher. Although we are making lower highs, an indication of the downtrend establishing.
Mid July we saw the bottom of the trading range tested and a minor sign of weakness. The price sliced through $10,000 on large volume and spread indicating large supply levels entering the market. We didn't see any follow through lower and this was the first sign that bitcoin may need to go sideways longer to build that cause for the next trend move. The first key level to watch is $10,520.30 - the top of the supply bar. This is the highest volume on the chart since the buying climax. Price has just moved through this area in the last 4 hours. The next few bars will be interesting.
18th July was the first sign of any demand entering the market and price rallied higher on nice volume and spread. We have seen this level defended on four occasions now. There are two ways to interpret this - the smart money is not allowing price to fall lower or they have not distributed fully yet and are doing this on the rallies higher. By 21st July the demand had eased and price had to fall to find further demand. We did see a spring of this area on July 29 and rallied strongly thereafter. Price rallied to $12,325 before stalling.
The second key level I want to talk about is $10,974.63 - this has been a flip area for support and resistance since the supply came in at this level back in early July and may be a crucial level moving forward. Look at how many times on the chart price has bounced higher or lower off it. Look at 5th August, it was the first time in a while that price could break through this level. It was no coincidence that there is a large range demand bar starting at that level. It is the area where demand overcame supply. Unfortunately there wasn't much follow through higher after this and price trending sideways before failing again.
In mid august the bottom of the trading range was tested and defended again.
We have certainly now built enough cause for a move. We need to see the confirmation on the right hand side of the chart. A large demand bar that takes out these levels and rallies higher or a large collapse and supply bar taking out the bottom of the trading range. Either way there is a nice moving coming and patience is the key.
So keep your eye on $10,974.63 in the near future!
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