BTC going as per plan - what are the next buy and sell areas ?
Hello,
The BTC price action almost perfectly follows our bullish scenario from 5 days ago. My idea here:
The current pullback is nothing but expected and I think it has nothing to do with the Senate voting for the proposed $1.2 trillion Infrastructure bill and the cryptocurrency taxing amendments there.
What we are seeing on the Weekly timeframe is a clear rejection at the downtrend line coming from the ATH. This is after BTC confirmed a breakout of the multi-timeframe resistance + the 21-period EMA.
On Daily, there is a bearish divergence on the RSI, which of course is not in synch with the last push to $45k
But, again this is normal. We saw a few bearish divergences back in January/February and yet BTC just made some pullbacks then continued on the way up. If we consider the Wyckoff accumulation intact, then it is time for a correction to the LAST POINT OF SUPPORT and that is the last visited high at $40,500. I think this is where we are going before resuming the uptrend. This is also where the 21-period on Weekly is located + we have the next most actively trading area with biggest volume (as per the VPVR indicator) there.
Check the main chart of the idea for the entire trade plan.
One more thing, there is definitely a Three Inside Down reversal candlestick pattern on daily, which only adds up to the above statement:
The BTC price action almost perfectly follows our bullish scenario from 5 days ago. My idea here:
The current pullback is nothing but expected and I think it has nothing to do with the Senate voting for the proposed $1.2 trillion Infrastructure bill and the cryptocurrency taxing amendments there.
What we are seeing on the Weekly timeframe is a clear rejection at the downtrend line coming from the ATH. This is after BTC confirmed a breakout of the multi-timeframe resistance + the 21-period EMA.
On Daily, there is a bearish divergence on the RSI, which of course is not in synch with the last push to $45k
But, again this is normal. We saw a few bearish divergences back in January/February and yet BTC just made some pullbacks then continued on the way up. If we consider the Wyckoff accumulation intact, then it is time for a correction to the LAST POINT OF SUPPORT and that is the last visited high at $40,500. I think this is where we are going before resuming the uptrend. This is also where the 21-period on Weekly is located + we have the next most actively trading area with biggest volume (as per the VPVR indicator) there.
Check the main chart of the idea for the entire trade plan.
One more thing, there is definitely a Three Inside Down reversal candlestick pattern on daily, which only adds up to the above statement:
