We’re taking a look at the Bitcoin price here on the daily chart. As you can see, we haven’t successfully broken down this 29-30k range right, where we have seen major bounces in the past. There’s not a really successful breakout, we are getting a reaction from these levels. Also taking a look at the one hourly on yesterday’s live stream we were talking about this big major resistance probability and having a fall from this range. It was very likely because of the spike on the VPVR from the volume trader the last few days and also getting the resistance from these lower highs finally getting that rejection. We’re going to talk about the potential scenarios.
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Let’s dive in here on the daily on the Bitcoin price. We were talking about this major support level at that 30 000 range, where we haven’t successfully broken down. We can see this reaction at these levels because we have insane support. What support? The lower lows here from this potential descending wedge pattern. There is some hope here for the balls to actually hold this range. Remember, we wicked all the way down to the 25.2-25.3k levels. So, maybe this is the bottom. Well, nobody really knows. But we can already see some exhaustion here on the bears looking at the daily. Everybody is looking right now for that potential 25-20k level, even below 20 000 in the next coming weeks. But nothing is for certain just yet.
We can take a look here on the BTC price. We can clearly see that we are currently at this major support range like I’ve just showed you. Now let’s zoom in here on the one hourly because I want to go straight into what is happening with the Bitcoin price. We were talking about bullish, and bearish case scenarios. It’s a major level where we do have a lot of support and resistance at the same time inside of this range. We, finally, saw you know this major lower high range big resistance and also the big spike on the VPVR finally getting that rejection from this range. Now, what could happen? We also talked about this potential inverse head and shoulder here. As you can see on the chart, can this happen? Can we actually consolidate at this 28 000 range? Then finally in between today and tomorrow pick up and, finally, break this neckline and continue to the upside. It’s not going to be an easy task for the balls, but it is very possible that it could happen now. I think that if we do correct the downside in the next coming days.
We’ll be finding big support where we’ll be finding support where we can see this spike here on the volume just right over here that we created on the 12th of May. Having this nice green spike in the candle and with volume which could be very strong resistance. If we take a look at fib levels from the low to the high. This is the 50 Fibonacci retracement at the 28.1 k level. It is the top of the wick here with this high volume looking at the one hourly chart. We could actually go to the 618 which is the 27.4, so around that range it is possible. We could actually consolidate and this is the scenario that we’d actually form this potential inverse head and shoulder with a descending neckline. Very possible here for the balls to have a reaction by tomorrow or even Monday. So, this is something that I am paying attention to now. If we do break out this major resistance from this descending neckline. Remember, we have been falling very far away the last couple of weeks. Now, it is very likely that some kind of relief rally is very possible. Are we going to go? Are we going to capitulate in the next coming days? Are we going to fall straight through?
This 25 000 low that we did create a few days ago and continue down to 20k. Well, I think a potential relief rally is very likely. Nothing goes down in a straight line and nothing goes up in a straight line. So, after this big massive drop. I think a potential rally is likely, now if we do successfully break this neckline with some high volume here looking at the one hourly. I want to see something like this. This is a big spike in volume, if we do manage to break this neckline getting above this major daily level at the 29.7, where we did get that reaction here as resist as support and also here as resistance.
As you can see this breakout from over here, we created a double top and there was hardly any volume, so it was very risky for any type of lungs. This was more of a short position low volume big spike on the VPVR big resistance here from these lower highs. What if in between today and tomorrow? We are going to manage to find support here with this big volume from this spike and creating this kind of inverse head and shoulder with the descending neckline is a very possible scenario.
I would love to see a breakout with high volume and actually breaking above these 31 000 ranges, where we do have the big spike in the VPVR. If we take a look at textbook targets with inverse head and shoulder. It’s from the head to the neckline, this would be depending on where we break out. We could go as high as 35 000 range like I showed you the 35 000 range from a level that we’ve been talking about the last few days which is a major monthly level. It is also a major daily level, so I think a big resistance is very likely at that range. There’s also going to be resistance at the top from this major consolidation. It is the last point here where we do have the big spike on the VPVR. It’s not going to be an easy task. I do see us hitting 32.5 potentially in the next coming days. It is very possible. So, there is a possibility of that happening. I think that 28 000 or even 27.4 which would be the 618 from this low to the highs for a potential scenario of a potential higher low is a little bit of a retracement after falling like this. For the last couple of weeks, some kind of relief rally is very possible. Before we actually break that 25 000 I think that is highly probable, so it’s something to pay attention to very big major trading opportunities in the next coming days.
This article is a transcription of a video made by Andy Bitcoinsensus
Original video: https://youtu.be/BISvfvDqKks