We’re taking a look at the bitcoin price on the daily chart on the four hourly. We’re going to analyze the situation on yesterday’s video. We talked about the importance of this daily candle right over here. We closed above this important daily level. We had daily close and open right here and four consecutive daily closes and opens. As you can see well above this 21 500, as you can see here now today. We were traced all the way down to that exact level and got that beautiful balance and we have continued to the upside. We’re gonna analyze the situation here on the full hourly chart to see what is going on. How far up can we go on bitcoin are we gonna go to 24, breaks 25 and continue up or is this time looking for short positions. We’re gonna talk about the scenarios.
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Let’s dive in here straight into the bitcoin chart on the daily. So, yesterday’s scenario we talked about this important daily candle. Okay, very important to close well above that 22 000 range and it did close at 22 425. As you can see right over here, this means it had nice bullish momentum and continuation to the upside is very very likely we talked about this scenario over here. We have this green horizontal line which is this daily level close and open on the 25th 26th of June and also the ones here 7th , 8th, and also 9th, and 10th of July. We can see you know that this is a strong range if you have four candles at the same level this means. If you do get above it like we mentioned yesterday. It’s very likely to hold as support and what did we get today we got that beautiful bounce from this range we actually held very nicely. We also had the VPVR valley area high from this range managing to hold the level.
So, if I just zoom in here on the four hourly all right all of these daily levels also D getting that massive rejection. I didn’t manage to put two long trade positions at this support level. I actually got into the first one and also to the second one here because I did believe that this is very likely going to hold. We are potentially going to break above the 22.8 one of the main reasons why was the DXY. The DXY has been dropping for the last couple of days so this was giving me a lot of confidence and bitcoin to have one more last leg up potentially to that 23 000 levels or even higher. So, if we go back here to the four hourly, we have a very very strong support level there . It was a kind of a 50-50 for me because there is a possibility of getting that correction.
As you can see here on the chart so for the moment long positions inside of this short-term uptrend. You do have higher probabilities. So, I did manage to get those two bounces, this one right over here at the 21 500 and exciting here at 22 700 here at the highs. Then the second one enters slightly higher seeing the exhaustion right here for a potential double bottom on the one hourly and actually getting into this kind of momentum to the upside entering around about the 21 700 ranges. Something I shared with my Bitcoin census trading community for the competition now is what is happening right now. I managed to put two good long positions between yesterday. Today what is happening right now is that we are going to have that continuation to the upside. Well, it is true that you know this is going a little bit parabolic in the short term at some point. You are going to have that deep correction right. Can you have a continuation?
I’ll start to beg getting bearish when we get below this 22 500 range where we do have strong daily levels and we are currently above this range. This could actually still hold as support and we could have more continuation to the upside for all of us interested in trading. If we do get that consolidation at this 21 22.5 and see a little bit of round formation on the one hourly chart. Then I’m probably going to look for long positions only if we do get that consolidation only. If we do get that low volume on the way down and this is the importance also of reading volume let me just go and zoom in here on the chart volume here on the corrections is very important to see that they are very low to give you that confidence for that leg up. Now we have had a big spike in volume spikes in volume also indicates potentially the end of a trend or the end of a downtrend or an uptrend. The best example, I could give you right now is this downtrend that we did have from the 8th of July till the 13th of July.
As you can see at the very end there was this big spike in volume. Also, this was a news volume, but anyway it was at the end of the trend. As you can see and then you started an uptrend here. As you can see from the 13th of July. So, what’s happening right now is that you do have a very big spike in volume. This is at the very top of this trend this could potentially indicate that this is the end of this uptrend but the only confirmation is going to give us is actually breaking well below the 22 500 seeing that bearish momentum even better. If we do break below 21 500 there will be time for some shorting opportunities. I know a lot of people want to catch the top and I wouldn’t say that this is not a bad shorting level.
But, I would I’m very conservative. I like to get into high-probability trades. I wouldn’t mind seeing some downside action and any type of retracement at a bigger resistance level breaking this up trend and then getting into that high probability trade for a lower high. I can be very conservative and wait for the high probability zone. So, what are they where are the big resistance levels? We do have a very strong daily level right over here. This is the 28-23 800. It is also if I connect here the higher lows and connect these higher highs that I do have over here the resistance level in the next unit between today and tomorrow is around about that 23.8-24.2 k levels. All right there could be a possibility that you are going to get that volatility above that range and then have a consolidation and or a double top or a swing failure pattern for that potential correction in the next coming weeks. We need to be very cautious to see.
How we react at that level. Of course, there is another possibility of the price action of bitcoin just going through this range in the next coming hours or a couple of days. I will not interest I would not be interested in shorting this level okay only a market order. A lot of people say this is huge resistance because of VPVR daily, weekly or whatever level Fibonacci and you put a limit order. There’s so much buying pressure that you suddenly see massive price momentum and, of course, you are at the risk of getting liquidated on these potential limit orders.
This article is a transcription of a video made by Andy Bitcoinsensus
Original video: https://youtu.be/S4X_STYYvpc