Watching for upside reversal

Morning folks,

So, BTC finally has dropped to predefined 51-53K strong support area, and based on technical picture it is suitable enough to reverse price. At the same time with Omicron panic around the Globe, the reversal process might be tricky and BTC could show more volatility around this level. In fact, we have a lot of different bullish signs that point on possible upside reversal (if not major but moderate, at least), and it is impossible to show them all on this chart. So, if you would like to - watch the video on FPA site. Its free.

Here we just tell that current support is crucial for BTC sentiment. We suggest that invalidation point stands under the level, and right now it would be better to not place stop too tight below the recent lows. By our view, reasonable area is below 50K. In this case your stop will be as below strong support as below weekly oversold and has minimum chances to be filled occasionally. Hence, the task is to buy BTC as close to the lows as possible.

We see few patterns that might be formed here - and one of them reverse H&S that already we could recognize, but it looks better on 4H chart. Also you could consider intraday support levels for entry as well by other reasons (watch the video). Finally be aware of bearish grabber that is forming right now on daily chart. We hope that it will be cancelled by the end of the day, but who knows... With new variant fears around, market could challenge the lows few times, if we get some bad news headlines.