We’re taking a look at Bitcoin. Finally reaching the target about 90 of the target. As you can see was hit here hitting that 39 700-dollar range just slightly below that level now. What is going to happen now for bitcoin because we are hitting critical resistance? We are adding major resistance looking at the VPVR major fib levels.
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Let’s dive in here straight into the content, we were talking about this diamond reversal pattern that usually they do break to the downside but this is why it’s called a diamond top or a diamond bottom for looking for that reversal but you could see the bullish case scenario also just like we saw yesterday where you do break the resistance from the lower highs here looking at the very low time frame. This on 30 minutes, we can take a look at the 15 minutes it doesn’t really matter, but you could see that formation. All right with the big volume at the center of the diamond and this is what we want to see all right on this pattern. Now the target is getting the width of the power of the diamond right from the center bit from the spike to the lower part and from the center bit. You can actually take a look on the potential target from the breakout which is round about this 39.7 k level.
We just hit this range to perfection and now it looks like we’re potentially going to create a double top or maybe a swing failure pattern in the next couple of hours something that we need to pay attention to because this is huge resistance and want to show you we potentially could reverse from this range now. Target was basically hit would say 90-95 of these targets definitely a take profit area because it’s big resistance. It’s a big major daily level. As you can see here in the green why is it a daily level. Let’s zoom out here just a quick explanation because if have my levels marked up want to explain why they are good levels all right this is a daily level from here the 15th and 16th of March. As you can see, I’m wrong this is not the one the daily level is right over here from the 17th and 18th of April. As you can see daily close and open at this range we perfectly hit it to perfection and got that slight rejection from this range.
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Let’s not fight the trend okay uh even though we do have some potential bullish case scenarios what is happening right now on the 30-minute chart zooming in from the volume traded for the last 6-7 days all right in between the 22nd or right till today. As you can see, we are hitting a major big point of control big cluster of volume and coming from this retracement.
This is potentially going to be a lower high range. We are also hitting the 618 region. As you can see from the highs Fibonacci to the lows, we are hitting that 618 area we had in big cluster of VPVR. Everything points out that we could get a swing failure pattern and have a little bit of a retracement now. The thing is are we going to manage to create a higher low at this range or are we going to come all the way down to retest the lows because mean being clear for me at resistance to having this run-up. This is a shorting opportunity right this wouldn’t look for longs here would be looking for shorts. If just zoom out here one second we can see that the volume is pretty high from this downtrend volume is getting lower and lower while we’re going up, we do have this diamond pattern with the huge volume in the middle which is fine. But we can see that volume is going down while the price is going up. This is not good news coming from a downtrend. We could potentially reverse from here question is: are we going to retest the lows here or are we going to manage to hit the 618 from this low to the highs, hit the 618 range? I’m talking about the 38.4 k levels all right uh hit that Fibonacci here 618 and also hit this low over here which might provide us some support also with the 618 and potentially create a higher low because if this scenario does happen, there is a much bigger pattern that want to show you.
Let’s just zoom out on the one hourly. If we do see that retracement to this level and if we do create a higher low. If we do start consolidating here there are big major trading ranges with resistance and support levels. So, I’m showing you the confluence there is a possibility that would prefer here to create a swing failure pattern, maybe, try and attempt to hit the 39.9 or even the 40k levels. Maybe 39.9 would be nice if we do that and create a lower high. There is a possibility, as you can see, we are creating you know the slightly higher highs. With these higher highs right there we have the lower lows. We are in this trading range there’s going to be a little bit of volatility in this level, if we start making this kind of price action there is also a possibility. If we do create that higher low right over here hitting the 618 and get a bounce to the upside – this is going to be looking very good for a diamond bottom pattern because everything points out.
Looking at this volatility we do have at the center bit of this range. Let me just go to the one hourly chart it would be much better to see what we want to see in a diamond is a big spike in volume. The biggest spike needs to be in the middle from the top to the bottom. So, this is the most important we are seeing some volume here but the highest point is the center of the diamond. As you can see, the potential diamond is still very soon now. If we start seeing that kind of price action a potential swing failure pattern right over here we’re hitting major resistance, if we come back down start creating, this potential higher low. If we start seeing this price action then this will be the formation of the pattern all right and this could be extremely bullish. If we do start forming, this in the next couple of days. This is on the one hourly, so this is in between today and tomorrow for this potential formation. It’s a potential scenario, it doesn’t mean it needs to happen but if it does diamond bottom is most likely scenario potentially breaking up from the center bit this could take us all the way up to above 42 000. As you know, we are looking also at this huge megaphone broadening bottom potential scenario. This could very likely happen, we are seeing a potential recovery also in the traditional stock market. The SP 500, so let’s see what happens. It’s going to be interesting to see all right what kind of scenarios so far am slightly bearish at this zone, we could see a little bit of volatility here above the 39 700 range getting a couple of wicks – will be paying attention the next few hours because if we start getting that volatility that rejection.
This article is a transcription of a video made by Andy Bitcoinsensus
Original video: https://youtu.be/r3Uh6tmurDs