Hello Traders! Ever since the dump from 60k the market has been heavy manipulated to scare off retail investors in two particular ways. One being huge price volatility which we saw in the form of the huge dump from ATH's, and the second form of fear being trading within a very tight range for a very long time with no direction. Both of these creates fear and more selling pressure than buying pressure which leaves us with this sideways market.
Obviously trading in such conditions sucks and should be avoided but it is our job as traders to identify what the market gives us and make informed decision based off of that information and that's what I will do below.
Recently on July 8 we saw another push to 32,000 which has been the strongest support out of them all since the market has dumped and yet again we saw a shark bounce right off of it. This is a good sign for us as the market still has a structure to work off of. We have also been forming a descending resistance (trendline sloping downwards) since June 29th all the way up until today which consists of pumps to the descending resistance and strong rejections. These dumps off of the resistance have all relatively ended up in the same spot and have not formed any significant lower lows meaning that there is no strong bearish trend as of now. Given this bounce off of 32k and no significant lower lows being formed we can expect a push above the descending resistance and test of the 35k SUPER STRONG psychological resistance. This resistance will be the make or break of the trendline break if we do get a push as if we get completely rejected and no buyers step in the pattern is basically useless. But... if we are able to break and form a significant candle close above it there's a strong chance the market will begin to recover.
Keep in mind I will not be trading any of these moves but there is a lot of confluence and backing behind these levels which makes them very likely to play a crucial role for the price of bitcoin in the near future.
Obviously trading in such conditions sucks and should be avoided but it is our job as traders to identify what the market gives us and make informed decision based off of that information and that's what I will do below.
Recently on July 8 we saw another push to 32,000 which has been the strongest support out of them all since the market has dumped and yet again we saw a shark bounce right off of it. This is a good sign for us as the market still has a structure to work off of. We have also been forming a descending resistance (trendline sloping downwards) since June 29th all the way up until today which consists of pumps to the descending resistance and strong rejections. These dumps off of the resistance have all relatively ended up in the same spot and have not formed any significant lower lows meaning that there is no strong bearish trend as of now. Given this bounce off of 32k and no significant lower lows being formed we can expect a push above the descending resistance and test of the 35k SUPER STRONG psychological resistance. This resistance will be the make or break of the trendline break if we do get a push as if we get completely rejected and no buyers step in the pattern is basically useless. But... if we are able to break and form a significant candle close above it there's a strong chance the market will begin to recover.
Keep in mind I will not be trading any of these moves but there is a lot of confluence and backing behind these levels which makes them very likely to play a crucial role for the price of bitcoin in the near future.