So as predicted this morning, Bitcoin bounced slightly on the hourly, wicking to nearly $8300 before hitting Span B cloud resistance. We are also at the top of the BBands, so what is likely to happen is we fall back to $8000 and under. This bounce took out late shorters and allowed the to reset to oversold, which will help guide more downwards momentum. As we can see by the VPVR, there is a lot of total selling coming in at this range, and that decreases inside the support box, which essentially means we should find a range there in the next few hours unless there is a clear breakout of the Span B cloud. On larger timeframes such as the daily and weekly, it seems that the downwards momentum shouldn't really go past $8700, since we are clearly oversold on the daily, and this range leans towards buying on the VPVR. The weekly looks to be forming a red candle, and with the reversal it formed last week it seems as if we might range in the high $7000 range for a little while and then get a breakout. On the contrarian point of view, the log chart for the weekly still looks a bit scary long term, as there isn't a developed, visible Span B cloud in years, and one is currently forming. On the 30 minute, we have approached significant resistance and are oversold, so that tells us we are most likely going back down into our pictured box very shortly. All the best with your trading!
Written By: Philip Raytburg
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