Bitcoin : Trending at major support, anticipate liquidation zone
The 1 week candle has closed and we can see that it represents all of the bearish pressure that occurred last week. The size of the red body however is very huge. Based on the price action analysis, the length of the body will represent the momentum in the market. With 1 huge candle that exceed the latest 4 weeks candle's size, we know that something significant occurred in the last week's movement either a bearish momentum or manipulation. At this point, I don't think that the manipulation is having a huge control in this movement. I more see it as a normal pullback after a huge upside moves.
After the break out of this yellow resistance trend line, the price has spiked for more than 20% upside moves which made the price to touch the $12000 region as well. But, even since the price showed us a huge upside moves, there is still 1 thing that is not complete. That is a retest toward the previous broken resistance as support to represent the phase 2 of break out strategy. However, this drop is very likely to become the phase 2 of this break out strategy as currently the price is moving slightly above the blue region. You see at the previous price action, this region is having a huge price action and because this is the psychological number, I highly consider this as a strong support.
Although we see this as a strong support zone, I have to anticipate a potential liquidation zone because we see it at the high time frame basis. To find the liquidation zone, I'll expect the support level based on the fibonacci below to become the next liquidation level as well. The .382 fibonacci retracement level could be the next region to tap even just produce a shadow in higher time frame.
After the break out of this yellow resistance trend line, the price has spiked for more than 20% upside moves which made the price to touch the $12000 region as well. But, even since the price showed us a huge upside moves, there is still 1 thing that is not complete. That is a retest toward the previous broken resistance as support to represent the phase 2 of break out strategy. However, this drop is very likely to become the phase 2 of this break out strategy as currently the price is moving slightly above the blue region. You see at the previous price action, this region is having a huge price action and because this is the psychological number, I highly consider this as a strong support.
Although we see this as a strong support zone, I have to anticipate a potential liquidation zone because we see it at the high time frame basis. To find the liquidation zone, I'll expect the support level based on the fibonacci below to become the next liquidation level as well. The .382 fibonacci retracement level could be the next region to tap even just produce a shadow in higher time frame.
