We’re taking a look at the Bitcoin price. I want to show you how it’s the most important week for Bitcoin right now as we are holding the value area low from 2021 and 2022. Looking at the VPVR as you know here, holding this major range, we are getting this consolidation. So, is it possible to hit 36 or even 38 000 in the next couple of weeks? I’m going to show you how this is very possible looking at the DXY holding the support. If we lose the support, this will be very good for Bitcoin in the coming weeks. We’re also zooming in here on the four hour, where we can see the Bitcoin price getting rejected from these lower highs and hitting that biggest point of control that was also posted on a tweet here on the Bitcoinsensus Twitter account. As you can see getting that rejection from thirty thousand one hundred dollars. Let’s see what could happen with Bitcoin.
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Let’s dive in here straight into this range and I want to explain how this is probably one of the most important weeks for Bitcoin right now where we are holding the biggest support level from 2021 and 2022. You can see it here on the VPVR. The value area is low. How are we holding this range? We’ve been bouncing here in 2021 several times. As you can see, we are going to manage to see that relief rally because we have been dropping for the last five to six weeks. As you can see here on the three-day chart, so is it possible to have a relief rally hit the 50 percent or the 618 Fibonacci retracement from this big major drop? Also hit the resistance from these low highs which would be around about the 36-38 000. If this were to be in the next one to two weeks. This is very possible, in my personal opinion. One of the reasons why this is also possible is that the DXY has been going absolutely parabolic for the last few weeks. As you can see, the higher lows have been just been going really aggressive to the upside and this cannot go forever. This we are actually bouncing at one of the most important support levels here on the DXY. As you can see, this white trend line where I do have here. If I zoom out on the daily it is the lower highs created from 2016 and 2020 actually breaking this level. If I go to the four hourlies, we’ve got that major bounce but what is happening right now is that we have created these higher highs on the price action.
On the RSI we are actually seeing lower highs. As you can see on the RSI lower highs mean that these are bearish diversions. The price action here of the DXY is getting exhausted and we are actually hitting this major support level now for the second time. Does this mean that the trend is just about to end with a DXY? This is very possible, but we only need one confirmation of which one the breaking this 102 range. As you can see which would be the resistance. Remember, from 2016 and 2020 the lower highs and also the last big higher low range that we did create the first week of May. As you can see on the four hourly, if we start losing this level these higher lows this means that potentially the DXY would be ending a small downtrend, where we could be potentially creating that lower high. This will be very good for Bitcoin in the next coming weeks. Of course, this is just pure speculation. We might get a big bounce from this level in the next coming weeks. We might see some more bearishness for Bitcoin, but we are at a critical range. If we start seeing the DXY this week drop from this level.
I’ll be telling you in the live streams in the daily updates. It’s going to be looking very good for Bitcoin, we’ll be looking for that lower high on the DXY and this is where Bitcoin potentially could see that major relief rally to 36 or even 38 000 range. This is something that we’re going to talk about in the next coming days this week. Remember, for those experienced traders on BuyBit. My favorite swing trading platform, you can get up to four thousand and fifty dollars worth a bonus and zero percent. Make a fee for 30 days you should not pay fees for 30 days. There’s also a BuyBit airdrop and make sure to check it out here. You got the link see, if you’re eligible and on Primex BT. My favorite day trading platform you get seven percent added to your deposit up to seven thousand dollars with Bitcoin sensor 50 as the promotion code.
Let’s zoom in straight here to the Bitcoin price on the four hourly because what I want to show you is that we are creating massive a massive descending triangle. We are creating aggressive lower highs looking at the four hourly chart we’re actually getting this resistance that we did mention in the twitter account today, where we did have these lower highs with the price action resistance trend line and a big point of control at the 30 100 range. This is where we are getting that consolidation now. We are creating low highs and we do have a big support level why is the Bitcoin price bouncing from this range.
This is something that we’ve been talking about for the last couple of days because of the value area low looking at the fixed range volume profile from this area to this one right over here the value area the point of control. It’s right over here as you can see at that 28 dollars so if we do break this major support we could see an aggressive drop on the Bitcoin price the next coming days descending triangle is usually bearish. So, the probability of actually breaking the twenty thousand six hundred is slightly higher. We are getting that resistance from these lower highs meaning that the probabilities and actually rolling down. Breaking support here is very possible and I strongly believe that we’re not going to successfully break out the 25 400 low here and create a higher low or actually a double bottom. If we do break this to 28 600 range, as I am looking for long positions at this level. But, I strongly believe that it is very possible for Bitcoin to actually break down from this range for actually getting resistance from this level and coming down.
What if we do break resistance because you might think. We might be breaking the lower highs here. This is going to be looking very bullish. We might get a massive rally to make sure to stay cautious because this level over here the thirty-one thousand seven hundred and seventy dollars is a major weekly level. If we go to the weekly here, we can see that these were the weekly lows that we did create back in July of 2021, where we could get that major resistance So, make sure to stay cautious and if we go back to the four hourly charts. It is also the big highs here. As you can see, it’s the value area high which is going to be very hard for Bitcoin now from a range the value area low. The value areas are big major levels, you can see here this big major consolidation. As you can see on the Bitcoin price on the 10th of the 11th of May. If we do break these lower highs. There’s no doubt in my mind that there will be a reaction here at the 31 770 range.
Valuary high the weekly level – stay super cautious. It’s going to be very difficult here to break. his range, we’re probably going to get a big rejection. If we do see the Bitcoin price hitting that thirty one thousand seven hundred thirty one thousand eight hundred dollar range plus minus a few hundred dollars because of the volatility. We might be getting a big stop at that level. Make sure to stay extremely cautious because we can see a big major resistance if we start breaking here the lower highs. It is also very possible after this big major consolidation, but we want to look for opportunities as traders and this last lower high range will be very strong support level. So, there’s going to be major day trade opportunities right there, if we do manage to break this consolidation and we do have this major weekly they’re valuably high. So, you want to get into that kind of price action, where the price is going to have major bounces from these levels where you could find extremely good opportunities for trading.
This article is a transcription of a video made by Andy Bitcoinsensus
Original video: https:/youtu.be/Bfjw9bJ75KA