We’re taking a look at the bitcoin price on the two hourly for hourly and I want to explain how there might be a very explosive move in less than 24 hours. This diamond pattern there’s been a small modification because we want to see a one-to-one Fibonacci time from these points. I’m going to explain why there will be a potential big breakout in less than 24 hours. It looks like we are breaking support. I am not worried just too much yet. I think we do still have a few hours inside with this range and I’m going to explain. What levels do we need to break to have a clear direction and what levels we might stop?
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Let’s dive in here straight into the content because yesterday we were talking about this diamond pattern and we’re looking at these lows all right. It was a very weird pattern but looking at this levels here from this lower high the pump that we did have yesterday. It does form a pretty nice diamond as you can see it looks like we’re just about to break out this major support from these higher lows now. What I want to show you is that Fibonacci time get straight here into the point because of the start of this major consolidation with a big spike in the middle of this pattern.
We can see the start was right over here on the 22nd of April so from the start to the center bit of the pattern. This range as you can see the one-to-one extension all right with Fibonacci time would be right over here. This blue vertical line – this would be round about midnight tonight. It looks like we are breaking this zone. So, I mean this could break out before going to the very end. But I think this might just be a little bit of volatility. We might get a bounce back up, consolidate and then have the proper breakup tonight.
Let’s see what happens now i want to show you the potential big direction here from this breakout if i show you this high over here and this higher low right there if we do solidly break out and close a one hourly or even a four hourly below this range. It is very likely going to be a confirmed breakout and we are going to continue to the downside now. If we do recover here in the next coming hours get back inside of this range and break tonight potentially in the next 5-10 hours. In less than 24 hours we will see a potentially a break up from this consolidation range. If it is to the upside I know that we need to solidly break this major level which was well above the 40 400.
Why we got the biggest point of control from the volume traded for the last 20 days right now almost. We do have a big spike here with volume. Now as you can see it does look like we are attempting to break down and continue to the downside. I still think that might be a little bit of volatility to get back in and then we’ll have a clear direction in the next coming hours. Let’s see what happens but for the moment it looks like we are breaking pretty solidly at this level. So, if we do close one hourly candle beneath this range. Then it’s not going to be looking good for BTC. This is the moment where we are potentially going to continue to the downside. What targets do we have? This is not a successful breakout just yet, especially, with this amount of volume. I mean this is pretty good to see.
We want to get below alright this is a lot of things that a lot of people get confused about. A successful breakout is always below the last higher low or the last lower high in this case. I’m just going to get this box over here and we want to get a solid breakout from this zone. If we do have this volatility inside of this range, there’s still no solid breakout. We are still basically inside of this major pattern range. These are potentially fake outs. We need a solid breakout from this low with huge volume to then be resistance and continue to the downside same here for this scenario break above the 40 300- 40 400 breaks well. Below the thirty 38 800 which would be this low range over here. If we do not break out successfully below this range, I wouldn’t be looking for short positions.
What are the targets well looking at this diamond pattern? We can see that the center part is from the top to the bottom. This would be the target range from the center so if we do solidly break out the resistance here as I showed you then. This would be the measured move this would take the BTC price above 43 000, of course, this might take days, it might even take a week. It is usually pretty fast when we see these diamond patterns as you can see in this scenario over here it would be a fast scenario same to the downside. So, if we do break down we would actually break below. The 37 700 major weekly level we would very likely get stopped here at the 37 000 which is also a very strong daily level. I would definitely start taking profits. If we were looking for some short positions on the breakout and then on the retracement to potentially come down, retest the lows and actually break it and definitely take profits just slightly above 37 000 that would be my game plan. If I would to explain this and if we do solidly break this resistance level, then I do see BTC having a major leg to the upside because if we do break this level, we would have a huge amount of volume from this spike.
We’ve also got a huge point of control as you can see at the 40400 dollars range big major level. This level will be holding very likely as support for continuation to the upside, so we’ve got very exciting times in the next coming hours. Make sure to stay tuned as you can see the price is getting a little bit of rejection here. It’s just been a potential fakeout only and only if this breaks this low. Then I will be closing my long positions from here. I’m still on my lungs, I’m still willing to have them open because I’m not scared. There’s a probability of this actually breaking resistance.
This article is a transcription of a video made by Andy Bitcoinsensus
Original video: https://youtu.be/DkJSGD4p60g
