We’re taking a look at the bitcoin price finally breaking out from this descending wedge with a huge daily candle. We’re taking a look at what kind of breakout this was, it successful because we did break out above the 39 000 big major resistance. We did it with a huge amount of volume now. What is next? What major levels should hold with? This correction is what we are going to discuss? What big major resistance I’m going to explain to you? Why did we got rejected from this level? Also, what major levels we do have above us, beneath us? We can take advantage of the market and we also take a look at the S P 500 a few days ago. We were talking about this bullish case scenario where we had these pin bars and also printed another pin bar getting liquidity below this low over here finally getting the bounce from the resistance here turning into support of this descending channel. We’re gonna have a quick look at the S P 500 because it looks pretty good for some bullish momentum. We know that it was only 0.5 the height from the federal reserve not too bad.
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You are eligible for a giveaway in Bitcoin. Everybody was extremely scared. Everybody predicted a dump, more than 90 of the people were saying. Hikes are here markets are going to crash and then what do we get where we get the other part which is the other face of the card, which is a massive big pump. A well massive big pump is a pretty decent pump for the traditional stocks. Also for Bitcoin, what I want to show you here is the massive big level that we were looking for. It’s to defend the high lows of the support, the daily weekly level, the descending wedge formation. So, a lot of influence at this range and we did finally get that pop here to the upside now. Most importantly – we want to know what major levels are important? What major levels is this a successful breakout? Well, yesterday we were mentioned on the live stream.
This is still not a big breakout, we are breaking the resistance from the lower highs. But we want to break the last level high which is at 39 000 with a huge amount of volume, this has happened already this has happened. So, a potential continuation after consolidation to the upside is very likely just because of the impact of the volume breaking the resistance of this descending wedge. What I want to show you also here. Yesterday we were talking about the VPVR, the major resistance that we have seen the price stopping several times at this range because of VPVR’s big strong level. We need to break the 39 000 because if we take a look at the last five months traded. The biggest point of control is right over here, we are currently above it. So, this range should be holding very nicely. I support the 38.5-39 give or take a few hundred dollars because of volatility. We’re not going to get an exact stop at that range. We’re going to see a little bit of scary action volatility potentially and then this range will hold two full potential continuations to the upside now. What I want to show you also is why we stop because we need to learn all right. Why are we stopping at certain points? Why are we stopping at this resistance is it, because of fib levels is it, because of price action has stopped before here is it, because of VPVR is it, because of moving averages. Whatever you like to use and we need to know why we stopped here for the potential you know trade opportunities give or take a short or maybe a long position.
What I want to show you right over here is the daily level that we had marked. We talked about this daily level yesterday and it’s pretty cool to see how we closed a day below this range. I’m talking about this level over here 39-727, so you can see that reaction at this daily level right over here next daily level above us is the forty thousand four hundred and forty dollars where we do have the close and open. As you can see, so there is going to be quite a lot of resistance while we are picking up here with BTC.
But, so far so good now what if we do have a correction if I go to the full hourly chart and you know there is a pretty large volume. I mean look at this nice green candle to the upside with a huge amount of volume. We haven’t seen a volume this size for the last at least one month. We haven’t seen a volume of this size which is absolutely phenomenal so if I zoom in here what major support levels should hold. Well, obviously, these 39 000 areas where we do have one of the strongest points of control from the last 20 days-25 days traded inside of this wedge. The biggest point of control is right there at 39k. So, if we do start correctly at this range, we should be holding nicely but also not because of the point of control. We have seen the bitcoin price stop there several times look at this nice bounce our support. We did get some volatility all the way down to 38.5 but this range hold held. This is the moment where you break inside of the four hourly charts, you get scared you finally hold it and have the reverse. So, make sure to stay cautious because we could get that volatility below 39k.
It’s a possibility hit 38.5 for example and then get that bounce. But, as you can see this biggest point of control, we’ve got support right there. We’ve got resistance right over here, as you can see, it’s kind of a double bottom and we’ve got a kind of a neckline at 39k. It should be holding pretty nicely with a little bit of volatility, potentially, to continue back up. just showing you the big major supports that I see here on the chart. If I zoom even closer, if we take the extreme low which would be in between this one right over here on the 30th of April or the 3rd of May. If we take a look at fib levels all depending, if this was the short-term top around about forty thousand dollars then fib levels. We are looking at fifty percent and also six one eight which would be slightly below thirty nine thousand dollars three eight two is right here above 39k. And three- and five-fifty percent Fibonacci and six one eight from the low to this high is in between 38.5 38.5 just slightly below 38.5 and 38.7.
As you can see, so you could see that below 39k level hitting the fib levels holding nicely as support before potentially continuing up, creating that next higher low, of course, this doesn’t have to happen. We could just consolidate at this range, if we take a look at the one hourly. We might be forming a short-term pennant here or a short-term bull flag and then break, and you’re not going to get that correction down to even 39 or 38.5. This is also very possible because what usually happens a lot of the time when you’re at the very low of a downtrend is that you don’t get that retracement. You just see the price rallying. So, you’re probably waiting for that nice correction and then the price is not going to do that you’re just going to go sideways, potentially, have a leg up waiting for a bigger correction – have a leg up. This is the moment where you kind of FOMO end and then you have the big ABC correction, I just want to show you because it has happened before it happens a lot of the times when you break a hive a lower high from a downtrend. So, in this case of Bitcoin, if you do see see this big massive downtrend over here. Then you suddenly see this big pump right there and you have this small consolidation. The price starts pumping until you get bullish and then you have the major drop. So, when you start breaking major resistance levels and looking bullish. You might have been waiting for that correction and you might just see the price, just start breaking major resistance levels. Now like I said big resistance level another one at forty thousand four hundred dollars if we go back here to the daily – it is a pretty strong level/daily level. As you can see on the chart, so we’re going to have stopped. If we were to reach the target of this descending wedge which is around about the 42.5 43k levels top of the wedge and last few days. We’re also taking a look at this over here the bump and run scenario.
Let me see. If I can find the chart right over here, if we go to the full hourly chart, I still think this is very possible where we are going to come back up here to the 42 43 000 in the next coming days, potentially, to retest this resistance. This is the moment where we do not know. If it’s going to be a successful breakout are we going to get heavily rejected at this potential bumper and scenario. Stay cautious! I’m still sticking with this prediction with this potential retest of the highs of the wedge and also the resistance of these lower highs, of course, this is kind of the potential momentum because of the breakout of this descending wedge. So, everything points out that we should be hitting this level in the next few days, potentially, in less than a week. Remember, for all of those experienced traders down below you have an insane bonus on buybit this is my favorite swing trading platform where you get up to four thousand and fifty dollars with a bonus and zero percent maker fees for 30 days. You, basically, don’t pay any fees for 30 days.
This article is a transcription of a video made by Andy Bitcoinsensus
Original video: https://youtu.be/wW7IVdWAYyY