Todays Menu, BTC 2 Ways.
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On the Long side, before seeing the upside again, I believe the local low will need to be taken out, bring price action down into Range 2, highlighted in green.
Typically, when PA (Price Action) moves in to a range, it will travel to from one side to the other. In this case, PA could potential break the VAH (Value Area High) to the downside. If this happens, I would first expect a move to the POC (Point of Control) and then retest the VAH where it will see a rejection and then make a move to the VAL (Value Area Low)
At the POC and VAL we also have other important levels to note for added confluence. At the POC, we have a Monthly Level of interest @ 23137.4, and a Weekly @ 22149.8 at the VAL.
Just under the VAL we also see the Fibonacci levels .618 and .66, levels known for potential points of reversal, as well as a major S/R (Support/Resistance) @ 21860.5.
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I would like to see a reaction the for of a SFP (Swing Failure Pattern) or a FA (Failed Auction), 2 patterns with low risk, high reward high set-ups, before entering a Long position.
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Over on the Dark Side....PA has broken a 230 Day uptrend, after rejecting at the VAH of Range 4 / Major S/R @ 31000.5, creating a possible Double Top pattern.
If this is to play out, I would expect to see PA drop to the bottom of Range 2 before retesting the Neck Line @24688.5, and then continuing downward to Range 1.
As mentioned above, there are several levels of Support PA will need to break for this pattern to manifest. In my opinion, if the .66 Level @ 20952.7 is lost, the probability is that much better for s complete retracement down to Range 1.
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Currently Short from 26271.9, patiently waiting for PA to make a move down to the 23000 area, with an alarm set at the Monthly Level mentioned above.
Drink more water, exercise and trade responsibly !
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*Not a financial advisor !*