$5000 value area doesn't matter for Bitcoin.

BINANCE:BTCUSDT   Bitcoin / TetherUS
Prediction: Bitcoin will blast through $5k to $6.4k

Bitcoin Prediction: Bitcoin will speed through the $5k value area
The $5,000 value area for Bitcoin has long been considered a very important support and resistance level. Why? Why is that level considered so important to many traders, investors and analysts? It has to do with psychology and familiarity. We use the number five in many, many forms. 5 bucks, 50 bucks, $1.50, etc. Yes, there are many numbers that we use frequently, but the number five is often used and understood as a ‘half way’ point in many of our thought processes. So it’s not a surprise that people would assume that $5,000 is an important level. But we need to use objective analysis to study support and resistance levels. To do that, one of the best tools in our trading toolbox is the Volume Profile (market profile, volume-at-price analysis, etc).
Volume Profile is a part of what is known as Volume-At-Price Analysis (VAP). Regular volume analysis on a chart shows vertical columns that show how much of something was traded at a particular time. VAP shows how much of something was traded at a particular price. VAP shows where most of the participation has been and where people have bought and sold the most. These areas generate horizontal volume levels. Longer horizontal columns are called high volume nodes while very small and short horizontal columns are called low volume nodes. The way that traders and analysts view these levels is much like normal support and resistance – with one factor being different.
High volume nodes represent strength and it is very difficult to move above or below those levels because they represent equilibrium. But, when prices do move above or below those nodes, extremely powerful moves can occur. The major gaps between high volume nodes, known as low volume nodes, act a sort of vacuum – prices get sucked into them and then to the next high volume node. We see this principle playing out on Bitcoin’s chart. As soon as Bitcoin crossed above the high volume node between the $3800 and $4000 value area, it exploded higher. And it is continuing to move higher. How high? To the next high volume node – which is inside the $6400 value area.
Interesting article my friend. I guess I gotta play around with the VAP more often.
What's the name of that volume indicator?
@glitterboy, Volume Profile
glitterboy captainquenta
@captainquenta, Thank you.
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Get Help Feature Request Blog & News FAQ Wiki Twitter
Profile Profile Settings Account and Billing Get Help Ideas Published Followers Following Private Messages Chat Sign Out