Hope y'all enjoy my analysis and feel free to message me if you have any questions!
Comment:
I've posted this chart before. It maps out all the various resistance levels w/ supply zones. You can see that we are currently requiring a firm close above the $3990 horizontal. Strong volume through this area should send us up toward $4100. Anything below this area is irrelevant. On a positive note, we are creating a mini bull flag. As I've stated before that when you move sideways near resistance (vice versa with support) there is a higher probability that the level will be broken. People often say that volume is decreasing in this pattern, isn't that a bad sign? No- that's the sign that you want. In bull flags, the consolidation of bullish patterns - in this case bull flag- supply is meeting demand. Demand is absorbing supply and eventually will absorb all and be hungry for more. This is where you get the explosive push out of the bull flag with higher volume. Low volume breakouts and not really breakouts, rather fake-outs and should be traded cautiously.
Comment:
Also look at the large parallel channel holding up price at support. I'd personally say that 4h closes below this will not be good. If it happens, I'd be a seller as we will have breached a strong uptrend and may have started my big ABC corrective wave that I mentioned weeks ago as you can see on the chart. Another area it found support on is that $3900 horizontal support/resistance level which we flipped few days back.
Comment:
Price is still above the 1h, 4h, and 1d pivots. I still remain bullish unless we break structure of higher lows, breaks the ascending parallel channel or take out key levels such as the pivot or the $3900 support.
Join our Crypto movement with Alpha Trades