We want to take a look at Bitcoin price on the weekly because we did close the weekly yesterday well above the lows of 2021. Does this mean that we are going to have a big massive reversal today, tomorrow? Well, no. I want to show you the potential volatility that could happen on Bitcoin right here on the one hourly chart. We can see that we are retesting the lower highs of this major neckline of this scenario. There was absolutely no volume on this pump. As you can see here on the chart, there is actually more volume right now on the rejection. We’re also hitting the VPVR levels and I also want to show you here that if we do break below this major low here around about the 29k levels all right. We have broken this ascending trend line with the higher lows. What major targets do we have? Are we going to retest the lows here around about the 26 000 area?
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Let’s dive in here straight into the Bitcoin price on the weekly. Just a quick reminder. What were we talking about? About this major weekly candle closing here right at the 31 295 well above all of the lows here created in 2021. This is something that is looking very good for Bitcoin for the mid-term and immediate short term. Yes, we can have this wick coming all the way down to retest the lows of the wick. But, I have strong confidence that this range, this support from these lower lows is going to hold in their immediate short term. This week can be a little bit bearish, we could see that volatility. But, I am looking for Bitcoin to get that relief rally, get that balance potentially trading in the next few days at around about 35-36 000 range. As you can see, we have been dropping now for the last few weeks very aggressively and a relief rally for the coming weeks – is very possible before we see any type of continuation to the downside of all of the selling. It has happened already. So, the immediate short term can be bearish midterm for next week, next couple of weeks. I think a little bit of a relief rally is very likely.
Is Bitcoin going to go to 18k? Like Renee Montenegro says all right in the next few days. I think it’s going to take some time. If we actually even dip below 25k, but this for me is a swing failure pattern. We have been dropping very aggressively here for the last few weeks. When you form a wick like this at the very end of an aggressive drop. I think it is time for some kind of relief rally. This is only my opinion. Swing failure here from the lows, I think it is very likely to happen 35-36 000 is potential. My target in the coming weeks now. Let’s take a look at the one hourly short-term scenario here because we were talking about it yesterday. We need to break above this lower high over here. We kind of try to break above it. As you can see, we had big major resistance looking at the VPVR from the volume trader the last eight days. Approximately, inside of this range is a big volume and we did not see any volume at all. Look at how low the volume is from this actual breakout of this momentum to the upside. That rejection was just like very likely to happen now.
Currently, we are retesting the neckline. Let’s take a look at the bullish case scenario. We are actually retesting the neckline from these lower highs. As you can see here on the chart to perfection, we are getting that reaction. We have several hour candles already closing above this descending neckline. So, what if we are going to hold potentially and continue to the upside well key level here to break resistance would be breaking this high over here. Then we could see some big continuation to the upside all right potentially hitting even that 35 000 range which is the biggest resistance that we do have above us. In my opinion right now, but, as you can see, VPVR is very hard to get above 31.5 32 000 big level. We are, probably, if we are going to break down this support level. Let’s talk about the bearish case scenario right now because we have broken from this low to this higher low. We have been bouncing very nicely as support.
If I just zoom in here on the chart, we can clearly see that has been respected and then we got three-four acting as very strong support getting that nice leg up. Now we have confirmed the breakout right over here from this trend line from the higher lows. We are at the last point of support to potentially confirm that we are going to go to much lower levels. As you can see hereб we do see some volume. There’s a higher volume on this breakdown from these higher lows than the actual volume from this pump trying to attempt to break these highs over here. So, if we do break this neckline from this potential inverse head and shoulder with a descending neckline. If we do break this major support start breaking this low over here at around 28.8-28.7. It is very likely that we are going to continue and attempt to hit at least. In my opinion, the 26.2 range which is the lows it’s the one hourly candle. We do have a daily level right there of 26.2k. As you can see, it’s very likely that this is going to roll back down. Especially, if we do see that price action, if we start breaking this low over here at 28.8-28.7 approximately then, of course. We are breaking the neckline and this is very likely going to create a lower high at these ranges and continue back down to re-test this level now, of course.
I am potentially going to short this, if I do see some confirmation here of this downside and a re-test of the lows here is very likely and here’s where we want to find out. If we are going to make a double bottom, we have an insane daily level at 26.2, we also if we take a look at the weekly. It would be round about that support level also. As you can see from these lower lows this potential descending wedge looking for that double bottom scenario getting a relief rally is very likely. I do not see Bitcoin trading at 25-20k-18k in the next coming days. We are going to see some relief rallies, despite this aggressive downside. So, this is the best case scenario looking at the one hourly. We want some confirmation breaking these lows breaking the neckline then we can see that it’s very likely. We are going to attempt to create a lower high and continue down and the dual bottom that I am looking for is around that 25-20-6k level to confirm. If we start holding a reaction list to this level, I am going to be very bullish. I will be looking for a swing long position. If we start getting a reaction here at these 26 000 areas in the next coming days.
This article is a transcription of a video made by Andy Bitcoinsensus
Original video: https://youtu.be/cQzQZWQvBHw