BTCUSDT: Testing the Triple Bottom

Hello traders!

One of the best ways to identify a breakout is volume. Real breakouts are usually combined with high trading volume. When the breakout happens during low volumes, the move will likely not hold and reverse. In the last 24 hours we've seen a low volume bullish breakout that reversed several hours later. Followed by much higher volume bearish breakout.

This latest breakout brings BTC close to the support established April 4th: 6430. If that fails our next support is the yearly low at 6000. A retrace is likely, especially from the yearly low. We will wait for a high volume reversal from the 6000-6200 mark before opening any positions.

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Comment:

We have fallen through the 6400 support. The next level to watch is the 5900-6000 level formed by the Feb 8 bottom. We are looking for a STRONG volume bounce at this level before entering the trade. Take note of the volume levels on the 2hr time frame for the three downwards breakouts. We are looking for volume equal to or greater to these levels on a bounce to form a nice V bottom.

We will likely get SOME bounce from the 6000 level. Do not be faked out by low volume bounces.

Comment:

Comment:

We are looking for a clear period of consolidation followed by a reversal indicator, confirmed with high volume. Similar to the April reversal. This is not the same as a knee-jerk bounce after a large drop.