We’re going to take a look at this critical range now. Is bitcoin just about to break here this major support now? We’ve only whipped down below this major support for the last few months if we do close a strong daily candle. It is not going to be looking good for Bitcoin. We’re going to analyze the situation here on the two-hourly charts. As you can see, we completely failed. This bump in run scenario here is getting support finally breaking down. We’re going to analyze the situation here for Bitcoin. I’m not sure, if you remember a few days ago, we were talking about the GMT token. My potential trades on GMT. There was another potential trade hitting the 3.40 mentioned two days ago and we exactly hit that level and had the retracement. We’re gonna take a look at the GMT token.
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Let’s dive in here because let’s just keep it nice, simple and sweet. Remember, we are in this huge ascending channel, there is held by a thread right now from the support of these higher lows. If we connect the daily closers, we can see we are still above this major support. We are getting a little bit of volatility a few weeks down here. If we do close a strong daily candle here below this major support round about the 38 000 regions a nice strong daily candle. It is not going to be looking good for Bitcoin very likely. It will create a lower high over here and potentially continue to the downside but this hasn’t happened just yet. So, we’re not going to analyze something that hasn’t happened.
Let’s dive in here into the two-hourly keep it nice and simple. We did break down from this major support bumping run scenario that we were talking about on the two-hourly chart. We managed to get one bounce to continue to the upside and then the price of BTC collapsed. it was true that Jerome Powell came out and said that potentially. By next month the interest rates are going to go up by 0.5 percent. I think that created a little bit of panic in the stock market and also on Bitcoin. We did have this major support from the bumper run absolutely collapsing, we were sitting just exactly at the biggest point of control. From the last ten days traded, as you can see, it is right over here at forty thousand four hundred dollars getting that support. It didn’t manage to hold. As you can see, we did collapse back down now.
What is happening right now if I just go daily. I just want to show you how important these daily candles are. What daily candles? Well, the ones that we have here. Let me just get the VPBR out of the way here one second. So, I can clearly show. We’ve got this daily close right there and this daily close right over here. What is happening right now is that we are bouncing in between this range. We’re actually breaking this major resistance at the moment. Let’s see if we’re going to continue to the upside one of them is at 39 700 dollars approximately. This one over here is at 39 300 dollars approximately.
Let me just zoom in here on the two-hourly and show you how. We have been bouncing inside of this range. These daily levels, as you can see, are a touch here with volatility back down back bounce and now it looks like we are having that leg up. Are we gonna manage to close here a nice two hourly or for hourly candle above this range for potential continuation to the downside? We need to stay super cautious because yesterday we did have a big massive correction here. As you can see with pretty high volume I would pay close attention because we need a lot of strength to start getting above major resistance levels the 40 500 is major resistance. There is a possibility from this high to the low that we are going to hit 50 618 Fibonacci levels and get big resistance to create a lower high right there and maybe continue to the downside. This is a very possible scenario now.
Let’s just take a look here on the two-hourly and zoom in because like I said I just want to clear the chart a little bit. We do have this major level right over here around about 40 400 dollars. Big spike on the VPVR at this level. As you can see on the chart we have big consolidations alright and it is slightly above the 618 level, where we could see some volatility there and it might be very big resistance. I am not in any Bitcoin position at the moment because it was in a long position right over here. I got stopped out here almost at break-even slightly small profit from 40 percent of the trade that I still have open here because I took 60% of profits around the 42 000 range. No trades just yet here on bitcoin until we see some signs of strength. I do not want to short the market down here because we are at the lowest point right. So, it wouldn’t make any sense now. Like I said, the 40 500 range seems like very strong resistance if Bitcoin does have a consolidation here. I will consider potentially shorting but if we do have a solid breakout here kind of a V-shaped recovery breaking above the 40 400 level and having a strong breakout. I would consider re-entering some lungs if we have a nice consolidation at this range with very low volume. So that is going to be my trading plan here for the next couple of days. It is the weekend, make sure to stay cautious. I also want to point out this over here just two days ago on the 21st of April.
We were talking about Bitcoin and I added GMT token because I did two very successful trades. We talked about this potential trade over here hitting this range. It is very likely going to get rejected and continue to the downside. I think there’s a high chance of getting the reaction and continuing back down to re-test here the 3.10 range and this is exactly what has happened. We did come all the way up to that 3.40 here on GMT and got that massive rejection from this major level that we did talk about two days ago. It just slightly went above the six one eight from this high to the low. As you can see slightly at that six one eight regions getting that volatility and got that massive rejection. As you can see coming back down exactly to the three dollars eleven cents now. I did jump in a trade here on GMT. I already took 50% of profits because I think this level is very strong support 3.10 3 area and we could have a potential double bottom scenario. We’re going to talk about that right now but if you are interested in trading GMT is on a BuyBit. They do have a huge amount of cryptos.
If we go here on GMT, as you can see, the scenario plays absolutely beautiful GMT. I’ve made three successful trades this week, an absolutely incredible week with GMT making us that major resistance and that beautiful trade here to the downside now. What could happen here on GMT? Now I’m not specifically looking for any trades, no speculation here because we are retesting now for the second time right after this consolidation up and down. Now there is a possibility that we might break down because it’s the second re-test after this consolidation. So, I don’t want to jump into a trade here thinking that it is going to bounce or it is going to break but I will react to this price action. If we do manage to double bottom get up here and break this zone then it will be willing to trade this as potential support here for a bounce to the upside. The case of a breakdown then we do know that this was all-time high on the 1st of April. This 3.10 level where we did get this nice consolidation. If the price of GMT manages to successfully have a nice breakout from here and gets a little bit of volatility to the upside. It is very likely it will create a lower high right over here at this three-dollar range, 3.1 dollars with the massive volatility that this altcoin does have. So around that area would be a potential short opportunity. In my personal opinion, I will be looking for these scenarios in the next coming days for GMT.
This article is a transcription of a video made by Andy Bitcoinsensus
Original video: https:/https://youtu.be/zGhI0Bfhxp0