I want to show you with the Bitcoin chart on the four hours that there’s a high probability that we are going to break to the upside in the coming days and potentially retest around about 40 to 43 000. Remember, in late March we created this high at 48 000. We had a small dump and then a lower high and a massive capitulation event. As you can see, then going sideways creates this descending wedge which is slightly bullish now. By the looks of things, we are very likely going to break resistance and continue to the upside and re-test the resistance from these lower highs created.
Late March and the beginning of April are potentially a bump in the run scenario now. In this bumpy run scenario. We do not know if it’s going to be a failed breakout or is it going to be a big breakout and successful uptrend. But what we do know potentially is that there’s a likely scenario to retest the resistance in the coming days with this kind of pattern. In this episode make sure to stay tuned because we’re also going to take a look at these major levels. I’m going to explain why we got rejected from 39 000 exactly.
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Let’s dive in here straight into the content because we have a very exciting week and I think it looks like it might be very bullish for Bitcoin to pump a few thousand dollars. Now let me just zoom in here on this chart because just keep it keeping it simple. Remember, we did reach these 48 thousand dollars. It was the Gartley pattern. We had the resistance from this ascending channel. Let me just load this chart right over here. We added Gartley. We have the resistance all right looking for those short opportunities now. As you can see here on this chart, we are forming a descending wedge and we have these lower highs just like in the intro all right. We did create that lower high and then we had a pretty aggressive drop. Now it looks like we are going sideways slightly to the downside creating this descending wedge which is bullish now very likely. This is going to break here in the next couple of days potentially in 24 hours. But it looks like we still have a few days that we could be inside of this descending wedge now. Where is the target of a descending wedge breakout? What is usually the top of the wedge? And the top of the wedge all right if we were to break out in the next couple of days. As you can see, we would be hitting a major resistance apart from hitting this major high of the wedge and also the lower highs. Trend line that we did create in late March and beginning of April. If we were to reach there in about three four days after the breakout. We are going to start hitting some major resistance, as you can see here top of the wedge major four hourly level and also the lower highs, so make sure to stay cautious on this range. I am actually already longing for this range. I am going to ladder into some long positions, of course.
We could come to lower levels and I’m going to explain what lower levels are. We do have potential support. If you are interested in trading down below on BuyBit. Here in this scenario very likely I am eyeing for this potential movement in the coming days – a very good opportunity right there. Also looking to take profits at this range all right definitely take most of my profits at this range and also looking for potential short opportunities. If we do pump there pretty fast in the next couple of days looking for that potential retracement, looking for some fib levels until that happens. This is still speculation.
Let’s go with a bullish case scenario that could happen in the next couple of days, which is this one right over here. So, as you know the bumping run scenario the descending wedge and these are the potential targets 42 543k, approximately. This would be the target in the next couple of days. So, let’s take a look here at this because what if we do not successfully break down this resistance. What if we do get a big massive rejection here at the 39 000 range again and do not break out from the resistance of this descending wedge, we’re looking at the daily, if we do come back down like I said there is a huge weekly and daily level at 37.7k. This is the daily and this is weekly, remember, we’ve been talking about a look at this range for the last few days now we’ve also got the higher low support line so there could be another leg down a potential swing failure pattern. In my personal opinion, there’s not going to be a successful breakup to the downside. I think there’s just going to be a little bit of noise, a little bit of fun, and have that last dump to the downside, creating a potential swing failure. But, just in case, as I showed you. I am starting to enter a small long position here on Bitcoin. I would be a ladder into this position all right while we drop down. So, let’s take a look at these major levels, something interesting.
This is the descending wedge all right on the one hourly chart. As you can see, hitting those lower highs lower lows sorry and the lower high resistance just got rejected. This was just early this morning, got rejected here at the 39.1 39 point, slightly below 39.2 and you might ask yourself: why did we get rejected at this range? Well, obviously, one reason why is because of the resistance here from this lower high. As you can see, hitting it to perfection getting that rejection but also if we take a look at the VPSV, this is the volume profile from each day. Look at this is pretty impressive, this is a very strong tool for potential day trades and even scalps like I showed the other day. Look at the biggest point of control from the 25th of April which is right over here. We have this red horizontal line, a big point of control at this range. Also, right over here, this was on the 27th of April just a few days ago the biggest point of control right there.
If we take a look at the volume traded for the last few days traded the last 10 days without counting before the 24th of April. If we do get the VPVR, the biggest point of control is exactly at that range at this level here the 39 39.1 k levels where we did get that heavy rejection from this descending wedge. So, we’ve also got this range look at the red horizontal line so if I do get the VPVR out of the way. We do have that horizontal line just at that level like I showed you 25th 27th biggest point of control where we did get one bounce here beautifully and also reacting as resistance right now. So, you could arguably discuss that this was a pretty nice scalp shortening opportunity to hit the next big point of control, which was this one right over here. As you can see just touching that level to perfection to get some profits and this was also a long opportunity with a long scalp just right there. So, I just wanted to show you how powerful this tool is just to get in and out of trades to make some cash, you know, so looking really exciting for Bitcoin in the next coming days. If I just take this level out of the way.
I want to show you the bearish case scenario if we were to get heavily rejected from this lower high resistance of the descending wedge and have a big massive dump, remember, we’ve got the weekly daily level at 37.7. This could fail and come back down to the next big daily level, which is at 37 020. It is also the support of the descending wedge and I think this could be the potential big massive volatility before, we actually have a massive breakout to the upside. So, I think that this scenario is still in the cards, but I’m looking for that bullish case scenario. There’s one slightly bullet bearish in the immediate short term, if not the bullish one, which we break today this major resistance and then continue to the upside in the next coming days or the one that actually comes back down re-test the lows here at 37.7. It’s like dipping below that range to 37k and then having that bullish reaction, remember, we do have that daily level at 37 020 and also major support here from these lower lows so very exciting times.
This article is a transcription of a video made by Andy Bitcoinsensus
Original video: https://youtu.be/t_CT29l5ov4