I want to talk about the Bitcoin price on the weekly chart going through again this scenario where we do have a big spike in volume on the weekly indicating a potential local bottom for the next coming weeks. Shout out to Kevin’s Benson because he was one of the first analysts talking about this a long time ago. We’re also going to jump in here to the one hourly chart because we did actually break down from this higher low ascending channel. As you can see not too much volume .I’m going to explain why we did get this bounce because we are the value area low. I’m also going to show you here some pretty interesting facts that why we did. We are getting this balance from this major level all explained and what is the Bitcoin price going to do from this range because we are at the highest point of control right now. So, are we going to go up or are we going to go down?
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I think probabilities are higher to the downside. I’m going to explain why but we’ve also got this scenario over here now like I showed you. We are in a kind of a descending wedge where we do have these lower lows we are actually getting supported from this range and I just want to show you the price action from January because if you were trading in January. You, probably, thought that this level these lower highs. We’re going to roll back down and retest the lows and we actually had a big massive pump gaining the last lower high. I want to show you how this is very possible in the next coming weeks when we could again. All the way up here the 40 000 area all right where we do have one of the highest points of control in the next coming weeks. It does make sense that we are probably going to hit those levels all right and get heavily rejected there’s a lot of confluence at that range.
If we do go up there it might be a very good shorting opportunity. I think a big relief for Ali is very possible in the summer. I want to explain all of this and we also take a look at the DXY because the DXY is at a key level. It has been pumping since the summer of 2021 and it has been going parabolic. As you can see with these higher lows every single time, now we are at a critical resistance that if we do break it, we’ll be breaking the uptrend structure. I’m going to show you what levels we need to break as support. So, then this might be good for Bitcoin in the next coming weeks. If we see a potential downtrend in the DXY.
Let’s dive in here and first of all shout out to Kevin Benson, of course, because he was one of the first analysts talking about this for many years now actually. He’s always looking at the potential big volume on the weekly on Coinbase and saying that this has always indicated a local top or a local bottom. It’s absolutely true because if I just zoom in here on the last few years on Bitcoin. as you can see I got this yellow horizontal line, anybody that hasn’t been paying attention because this is something that you cannot ignore technical analysis, is all about probabilities all about stuff that has happened in the past. In the past, we can see that. This is pretty accurate looking at this weekly volume. We can see the spikes all right in volume all right indicating a local bottom or a local top.
As you can see here, this was March of 2020 huge volume local bottom. We dumped, we pumped after these spikes in volume. As you can see we do see the May of 2021 big massive dump It was 30 000. We slightly went below 30 000, but not successfully. It was a local bottom. We actually pumped from that range what has happened last week is that we did get this big spike in volume. We haven’t seen a spike in volume like this. Since one year ago. This is may of last year indicating a local bottom like in the past and this is made from this year. We can see this could be potentially a local bottom actually the weekly closing above of last week above the thirty thousand dollars.
This is why we are potentially not going to break successfully down these thirty thousand dollars for the next coming weeks because we are looking for that weekly bottom. I’m showing you here on the chart, so this is something that we do not need to ignore because I would say it has eighty percent of the probabilities looking at what has happened in the past most of the time. So, this I mean this I think it’s something that it’s undiscussable. You cannot make this upright take a look at Bitcoin on the one hourly chart. We can see all right that we didn’t manage to break below this low over here from this kind of ascending channel that we did create. As you can see higher highs, higher lows breaking down no volume at all. You might think to yourself why did we get this bounce from this level well reason number one is because we are getting support from this range all right from the 14th of May already getting a balance. It is a major level and you might ask yourself why it’s pretty simple. It’s because of this trading zone over here. It’s because of this volume all right and if I take the value area. The fixed range from this area all right.
I would go from this candlestick to this one because I just want to know these levels where is the highest point of control. You can clearly see here on the chart it is this red horizontal line the biggest point of control here is at the 28 600. This is the reason why we are getting a bounce from that range. It is the biggest point of control from the volume traded all right below 29 000. So, this volume trading range biggest point of control is the reason why we’re getting this balance. This breakout from these higher lows all right this trend line was with hardly any volume. We’re actually getting a slightly higher volume right now inside of this channel. We actually consolidating above the biggest point of control from this volume traded range, so there is a possibility that we might get a rally from this level the ideal scenario for me, of course, and the probabilities are slightly higher and actually coming down from this range because we are actually in a big aggressive downtrend.
That is the main reason, we are in a very aggressive downtrend. This is a relief rally. You are looking to get gravitated back down to these low levels created on the 12th of May. But what if we do get a massive bounce from this range now the probabilities like I said are slightly higher and actually continuing to the downside here slightly maybe hit in 28-27 000 or even the lows here around the 26 25 000 range. It is very possible for that double bottom which I strongly believe could happen. Remember, for all of those experienced traders BuyBit. You can claim up to four thousand and fifty dollars’ worth of bonus and zero percent make a fee for 30 days.
There is also a possibility that you might pump from this range and the first example and the only example I want to give you is this right over here. This chart over here is you know the Bitcoin price on the four hourly. We can see this descending wedge with the lower lows. As you can see and also the lower highs. So, it is forming a kind of a descending wedge pattern that will go to the end of the apex here at the end of the summer around about August. Actually, around August is the end of the Apex, we could be breaking down or up. Well, before August, of course, but what I want to show you is that we are getting supported from this trend line right from these lower lows. It is also a major level.
It is the lows from the summer of 2021, we are not successfully breaking down this range. It is one of the strongest levels for Bitcoin, so volatility at this level. But, maybe not potentially breaking down successfully like I showed you also on the weekly probabilities and not breaking below 25 000 successfully is very high. So, zooming back in here, what I want to show you is the real reason. How that we could actually pump from this range all right. We need to take a look at the bullish case scenario too because I bet you were very bearish at this range here on Bitcoin. This was January of 2021 first of February where you were in a very aggressive downtrend here. As you can see on the chart, you thought that you might get this dead cat bounce. You’re going to roll back down to re-test the lows here from January of 2021 which was around about 33 000. If I zoom in, what happened right over here is that you actually had a huge massive bounce from this range gaining the highs, massive liquidity grab above this last lower high, people thinking that here. You’re going to roll over and you catch a huge amount of traders getting above the last lower high. The amount of stop losses at this range would have been absolutely insane, we’re also hitting major fib levels
This article is a transcription of a video made by Andy Bitcoinsensus
Original video: https://youtu.be/cgQEcLe1V0Y
