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Bitcoin: Reversal Out Of Buy Area, Big Traders Possibly Buying

COINBASE:BTCUSD   Bitcoin / U.S. Dollar
The buy area created by traders and investors taking profits (see my last update) didn't cause the price to reverse last night.

We did see a couple of small reversals take place from the area, but no large reversal back up to the high created by the huge rise occurred. The area itself (not marked) was broken by a large drop at 2:30am, which caused the price to fall into the area I said to watch for a reversal. (the big green buy area in the image). Soon after it fell into this area the price reversed and started to move towards the sell area created by the drop that took place at 2:30am. It hit this area at 2:30pm this afternoon and then started to fall.

I would've been able to anticipate this drop for you, however, I wasn't around to give an update at that time, so my apologies.

The drop started off fairly slowly with smallish candlesticks forming, but then at 4:00pm a huge drop 70 point drop caused the price to fall into the buy area.

The candlestick that shows this drop eventually ended with a large wick on the bottom. This wick is important because it indicates that big traders and investors used the drop as a means to buy more Bitcoin - the only way the wick could appear is if someone bought, who buys when the price is falling like that? Them buying indicates we could see the price reverse out of this area and move back up to the sell area either later on tonight or in the coming days.

The point to watch right now is the little area I've outlined in red.

If the big traders and investors did buy during the large drop it's likely they haven't been able to buy the full amount of Bitcoin they want, as not enough people were selling during the drop . This means they'll have to buy again when the price falls. Where would they like to buy?.... At a similar price to where their 1st batch of Bitcoin was bought. That way if the price rises both of their positions will make a similar amount of money.

The small area encompass the point where the large traders/investors would have bought, so is the point where they are likely to buy again.

Watch for a reversal inside this area.

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