BTC has been dropping in price since testing 40k 10 days ago. Earlier in the week it came down and found support at 28k and has since moved back up within this broadening wedge.
To me it seems all but inevitable that we'll be retesting 28k again since BTC just barely hanging on above 30k. I'm not sure if there will be enough buying pressure this time to bring the price back up if we do.
So where will we find support?
Looking left you can see there's a steep drop off below 28k. The most likely place would be near 24k. There was some support found there previously. The volume profile shows strong activity there as well.
Taking a fib extension you can find some potential zones of support at the 1, 1.272, and 1.618 which also align within the zone nicely and also near the previous bull run ATH.
Finally, using the linear regression indicator you can see the bottom of the regression being within the area as well.
I expect a bounce once we find bottom and a rally to come up and retest 30k.
To me it seems all but inevitable that we'll be retesting 28k again since BTC just barely hanging on above 30k. I'm not sure if there will be enough buying pressure this time to bring the price back up if we do.
So where will we find support?
Looking left you can see there's a steep drop off below 28k. The most likely place would be near 24k. There was some support found there previously. The volume profile shows strong activity there as well.
Taking a fib extension you can find some potential zones of support at the 1, 1.272, and 1.618 which also align within the zone nicely and also near the previous bull run ATH.
Finally, using the linear regression indicator you can see the bottom of the regression being within the area as well.
I expect a bounce once we find bottom and a rally to come up and retest 30k.
