We’re taking a look at bitcoin on a daily basis and we finally hit that 30 000, slightly below 30 000, and got a beautiful bounce. I want to explain why we did get this balance from this range bouncing from that daily level.
We also could take a look here at the VPVR because this is the very last point where we have a huge amount of volume. As you can see in the past here in the summer of 2021, January of 2021 getting those bounces. If we lose this level, I’m going to show you what levels we could hit potentially to the downside. Now, we’re going to zoom in here. The one hourly and 15-minute chart, I want to zoom in here and show you how we are creating a big massive amount of volume in this range. As you can see, bouncing from this major daily level with some pretty high volume as you can see here on the chart now there is a possibility that we are going to have a potential relief rally in the next coming hours in the coming days alright and I’m going to show you what big resistance we do have above us for a potential continuation rejection to the downside.
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Let’s just zoom in here on the daily and go through the scenario that happened, we were losing all of these major support levels all right, as you can see here on the chart losing these higher lows from this ascending channel since we broke this major support level. Then we’re starting to be pretty bearish all right looking for that 30 000 re-tests potentially right these lows over here which is our next major big support from this kind of ascending channel. Bearish, bear flag alright if you wish to break the support finally becoming bearish and I want to explain to you why we actually got this major bounce. I would have longed for this but I was a little bit distracted by some other markets such as oil, gold, natural gas, and some old coins while looking at Bitcoin. I didn’t have my levels marked; I was, you know, pretty sure that thirty-thousand-dollar range was going to be retested. Once we broke out from this support level of this ascending channel and what I want to show you here. We’ve retested all of these daily levels right all of these kinds of daily levels have been broken. As you can see, looking for that you know explosive moves to the downside, and as you can see what are the next major daily levels that need to be retested.
Well, the last one that hasn’t been retested was this one right over here created in July of 2021 because all of these ones have already been tapped. They’ve already been retested and if I just zoom in here on the chart this level is 29786. As you can see, we do have that daily closing open on the 20th and 21st of July. If I just zoom in here on the chart, you can see we actually hit that level to perfection and get that huge massive bounce. So, it was, in my opinion, a potential long opportunity, a bounce of almost 10 percent here on BTC. So, absolutely incredible there I did not long for this but I would have longed for this if I would have been paying attention to this level all right. This happened early this morning if I just go here to zoom in on the one hourly chart. This is the daily level it was at the 29 786, approximately, and it tapped the Bitcoin price did actually hit the 29 731. So, just about 40-50 slightly below this daily level and finally getting that big massive bounce.
As you can see, creating a huge amount of volume defending this major daily level, defending the lows created in the summer of 2021. We are getting that kind of relief rally. Now your question might be are we going to break this zone are we going to break 30 000. I think that not just yet, I think it is a possibility but I think we should be seeing a pretty nice relief rally in the next coming hours and a couple of days, of course, with a little bit of volatility potentially. You might ask yourself looking at the one hourly how far up can we go well. We’ve had a pretty aggressive drop all right all the way since you know the fourth of may all right having, this fake-out to the upside looks like we were going to go to higher levels then breaking the major support from the ascending channel here on the blue, where we’re starting to become a little bit bearish. Potentially, looking for much lower levels looking for that thirty thousand dollars now. What if we are going to have a relief rally with how high we can go.
Let me just explain to you right now that we have created a big cluster of volume from the volume trade in the last 10 days, one of the biggest volume clusters from this major drop is created right here putting the brakes on Bitcoin. So, it doesn’t drop below 30 000 here with big volume creating that cluster of volume bouncing on the daily level to perfection right. As you can see here, this green daily range, so how big can this relief rally be because we have a strong level which is at thirty-three thousand dollars. If I zoom out on the four hourly it is a strong level. Let me just get this out of the way that thirty three thousand dollars is a big level because it was a low created here in January. As you can see, so we could actually tap that level get a little bit of rejection but if we do break this zone then I do think we could have a pretty nice rally all the way up to 35 000 and why 35 000 because that has been an important daily level as you can see here on the chart okay we did actually tap that level we did get a little bounce. But, of course, the selling pressure was so big that we obviously came all the way down below thirty thousand dollars just early this morning. So, we’ve got that daily level and if I zoom in here on the chart. It is that range where we did get that small bounce. We did get that reaction here, so quickly we got a small bounce and then breaking below and, of course, turning into heavy resistance at 35 000. So, what if we do have a relief rally.
Well, this 35 000 range is going to be super strong resistance because if we take a look at the VP of the Fibonacci retracement from the highs here where the drop started pretty aggressively. It is also the 50 Fibonacci that is 34.9 here which is the 35k level. We could be getting a big reaction from this daily level. As you can see, it’s also a 50 Fibonacci retracement. So, I would be paying close attention to this range all depending on how we react. If we do get those failed movements, those big wicks on the one hourly, on the four hourly trying to break the zone look like getting that rejection. It is very likely here, we are going to continue to the downside.
This is if we hit that level of course as a trader. I don’t know where the price is going to go. I am looking for those levels above me and below me where we could get that potential bounce to make some gains, of course. So, that is the one of the strongest levels that I see now on Bitcoin 35 000. I think it’s pretty realistic after this severe drop that we have had the last five days going from 40 000 below 30 000. I mean this is a drop on bitcoin of over 25, so a relief rally up to those levels which would be about 15 rallies, approximately. 15-16 rally is very much in the cards and I think that is a strong resistance range where we could get heavily rejected apart from the 33 000. It’s a short-term resistance zone but if I take a look at fib levels also we can see that the 382 is slightly above 33.7. The most important one, of course, being the 50 and the 61h which is at 36.1 which I think we are probably not going to reach.
But, if we do it is also very strong resistance. It’s the 618 as you can see and it’s exactly the 36.2 approximately where we do have a very strong important weekly level here’s where we had this large consolidation here as you can see before getting that major drop so major levels here the 36.3 and the 35 thousand dollars. If Bitcoin does manage to get that big relief rally, of course, in my personal opinion, this would be a level to look for potential shorting opportunities depending on what kind of reaction. We do have that range, of course, remember for all of those experienced traders my favorite platform that I use daily is by the end Primex BT on buyback.
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Let’s take a look at the 15-minute chart alright to take a look at potential scalping opportunities because by the looks of things, looking at the last few days. This drop over here the biggest volume is right over here, it is at this consolidation that we have had between thirty thousand dollars and thirty-one thousand dollars creating that big massive point of control. As you can see, I think this potentially is going to be very strong support, it is currently at 30 800 we could actually get a bouncer to continue this relief rally creating a higher low. It’s very possible, in my personal opinion. You can see here in the 15 minutes you have created a kind of inverted head and shoulder creating this higher low. So, it’s very possible, if we do get that retracement here on Bitcoin.
There is a possibility that we might get a big nice bounce from the volume profile, we have this kind of neckline from these lower highs of this kind of inverted head and shoulder. We’ve also got the Fibonacci retracement from the lowest part here below 30 000 to the top that is six one eight. Fib level would be also roundabout that thirty thousand eight-hundred-dollar range where the price of BTC could actually get hold nicely for a potential continuation here. Inside of this relief rally. Remember, price action doesn’t go down forever. You are going to see some kind of relief rally, so I think it’s very possible that this could happen in the next coming hours and a couple of days not dropping just yet successfully below 30 000. I think this is just not going to happen just yet after having this pretty aggressive fall for the last few days. That’s only my personal opinion.
This article is a transcription of a video made by Andy Bitcoinsensus
Original video: https://youtu.be/yuH5xNpm0fY