We take a look at Bitcoin at the four hourly chart because, as you know, we are hitting super strong support from this higher low support line from this ascending channel that we’ve been talking about now for ages. It looks like the Bitcoin price is also forming a huge descending wedge. As you can see here on the chart, it’s also hitting that major weekly and daily level that we go through and we’re also going to zoom in on the two-hourly to check out these major levels, where we could get these bounces. These major rejections support levels and we’re also going to take a look at Ethereum – a very interesting scenario.
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Now let’s analyze because we on the daily – remember – we did have the daily closes major support line with higher lows. But we also had the wicks and if we go to the full hourly chart, you can see the bodies of the candle hitting this range. So, we just exactly retested this support and got a pretty nice bounce today early this morning. We got the high lows right there from the sending channel getting that bounce from this level. We also got the daily and weekly level at 37.7 k. We are getting that reaction. We are retesting it dipping slightly below getting that bounce again.
As you can see, it is round about this range. We have four candles opening and closing at this range. As you can see, the super solid level has a lot of confluence with the weekly daily the higher lows from the support and we are also forming this descending wedge scenario. You’ve probably seen this in other places right now, it is true that we are forming these slightly lower lows with slightly lower nose, with no solid breakouts. As you can see from the lows no solid breakouts every time. We break out from this major support, we have a big massive bounce, we break down from the support big massive balance. We break down from this support big massive bounce, so does this mean that if we do break down from this low. Is it just going to be a dip down to 37 000 and have a big massive bounce? Well, potentially.
This is usually a bullish pattern. If we do have a solid breakout from the resistance with huge volume, we are going to start looking for lungs on the retracement. No doubt about that but it needs to be a very big solid breakout now. Obviously, I am also looking at longs at support levels. If we take a look at the two-hourly chart with the major levels that I do have. I just want to show you the major biggest levels below the weekly, where we have been getting these bounces. It is a daily level. Let me just zoom out here quickly. I’m going to show you why it is an important daily level because we have many daily candles closing at this range look at this very solid level for candles to close and open-close and open at this range. You know this is above 37 000. dollars these two right over here are about thirty-seven hundred. Let me just confirm this is thirty-seven thousand fifty-seven thirty-seven thousand twenty.
So, the very low thirty-seven-thousand-dollar range is a very strong daily look at these four candles here closing and opening at this range. It’s very possible you know if we take a look at the two-hourly. This is the green level where we could get a big bounce from that range. Also, we do have to remember the lower low support line, which you know in between today and tomorrow. If we do come down to that range breaking this weekly, we could get a big massive bounce all the way back up to around about the 38 000 range so just something that I wanted to pay to point out there. I would also want to show you what big resistance we do have above us because I am interested in the volume traded for the last 10 to 15 days. The biggest point of control that we do have right now is in this region between 39.4 and 39.6. As you can see, we do have daily levels on the green. Why are they daily levels because they are daily closed, we did get big bounces at this range. As you can see it is a major level and also we do have one of the biggest points of control so if we do solidly break out the 900 – 39 – 400 range this range over here. Then it’s going to be looking pretty good for Bitcoin to the upside after a big solid pump but till then we’re not gonna try and find out what we’re going to do. We want to react to these major levels so something that I wanted to point out the last few days.
We were talking about a diamond pattern. This is usually a reversal pattern but in the case of this diamond. Nobody was talking about this. I didn’t see anyone talk about this. You can clearly see that we did have that successful breakout. We were talking about it. If we break the highs, it is bullish. If we break the lows all right the last higher low then is bearish. We solidly break down, come back up, re-testing the daily level, and then continue to the downside. This actually almost met the target. This is around about 90 of the targets, if we do get the highs from the pattern to the lows – this is how you measure the diamond pattern potential breakout. If you go to the center part, as you can see we, basically, have done 90% of the actual trade. It could have gone all the way down to 37 000 that we might hear in the next couple of days. This is also very likely, but this is definitely already a take-profit area. If you do come down to retest these lows alright this is definitely a take profit protecting your position. If you did short this potential breakout. We’ve been talking about this diamond pattern the last few days so that was a pretty successful move to the downside from the breakout. Nothing much to add. Huge resistance here at the 39-300-400 range major daily levels, a big point of control. Also, as you can see here on the chart from the last volume traded for the last 10 to 15 days. As you can see and also it would be a major fib level from this high to this low. The 618 is exactly at that daily level from the dump started on the 28th till the 1st of May. Major resistance levels right over here at 39.2-39.4. Stay super cautious at this range because we might get heavily rejected to the downside now.
Let’s continue here with Ethereum right now because Ethereum is also looking pretty interesting. I just want to show you this scenario here: massive descending wedge. This is usually bullish, I wouldn’t you know potentially long. We are very likely going to break bullish because this is a bullish pattern. Not only if we do have a solid breakout from the last lower high which is at the 2950. If we do see the price action of Ethereum breaking out this zone with very large volume breaking the last lower high from this descending wedge.
Then this is the moment that I think that we were potentially going to create a high low to continue to the upside but till then – all depending on Bitcoin, depending on what Bitcoin does I can see this scenario. Bitcoin breaks bullish, I think Ethereum obviously will break bullish also what are the major big support levels for Ethereum right now. Well, we got this one right over here which is at the 2 and sixty dollars approximately. If I go to the daily chart, we can see it is around about that range daily level, exactly, at 2720 right there. This is where we are currently getting a supported look at this. If I zoom in on the Ethereum chart. This major daily level is holding very nicely-getting that beautiful bounce. We’ve also got another major important level which is a monthly level. If I zoom out on the monthly we do have the close end open just right there at this range. This is exactly 2689, so that 2700 range is super strong. As you can see here on the chart, major support from descending wedge. We’ve got this major daily level with the monthly level, we could see a lot of volatility here and manage the big Ethereum price.
This article is a transcription of a video made by Andy Bitcoinsensus