In my last update, I said I wanted BTC to drop to 19.5k before bouncing, and that a reclaim of 20.8k would be a sign of strength.
We ended up bouncing at 19.5k for more than a week, but never reclaimed 20.8k, which showed us that those bounces were weak.
Now, we are at a nice area of support, a strong fib level and lows that haven't been taken for 2 months at 18,555 (representing liquidity)
Here, it's just the same as last time:
If this bounce is to show strength, we have to reclaim the low of the range that we just lost, which comes around 19.7k
If we can reclaim that level, I'm looking for 2 areas:
- The range from the 19th to the 26th of August, we have nice resistance around 21.4k, but the entire range should be viewed as resistance (from 21k to 21.8k)
- If we break above that, the OB at 23,250 - 23.6k
Any questions?
Good luck traders
Remember not to break your rules
Habib
We ended up bouncing at 19.5k for more than a week, but never reclaimed 20.8k, which showed us that those bounces were weak.
Now, we are at a nice area of support, a strong fib level and lows that haven't been taken for 2 months at 18,555 (representing liquidity)
Here, it's just the same as last time:
If this bounce is to show strength, we have to reclaim the low of the range that we just lost, which comes around 19.7k
If we can reclaim that level, I'm looking for 2 areas:
- The range from the 19th to the 26th of August, we have nice resistance around 21.4k, but the entire range should be viewed as resistance (from 21k to 21.8k)
- If we break above that, the OB at 23,250 - 23.6k
Any questions?
Good luck traders
Remember not to break your rules
Habib
