Current Situation
Bitcoin has completed a sharp decline and is located in the critical gap closure zone. The chart shows two key technical elements: a resistance level in the upper part of the range and a high volume zone (HIGH VOLUME ZONE) significantly below current prices. Price has stopped precisely in the gap area, creating conditions for institutional players to make their decision.
Primary Scenario: Bounce from Gap Closure Zone
An immediate reversal upward from current levels is possible with subsequent movement toward key resistance. Gap closure often acts as a price magnet and correction completion point. If limit players are ready to defend this zone, a strong bounce is possible without testing lower levels.
Target Levels:
Movement toward the upper boundary of the range
Test of key resistance where price was previously stopped
Alternative Scenario: Test of High Volume Zone
Price may continue declining toward the high volume zone (HIGH VOLUME ZONE) located significantly lower. This area represents interest for forming a long-term reversal, as high volume concentration indicates institutional position accumulation. A more powerful and sustainable reversal upward is possible from here.
Key Levels of Alternative Scenario:
HIGH VOLUME ZONE — area for potential long-term reversal
Possibility of forming a strong base for upward movement
Trading Plan
For Primary Scenario:
Monitoring price reaction in current gap closure zone
Entry into long positions upon formation of reversal patterns
Target: movement toward key resistance
For Alternative Scenario:
Waiting for decline to high volume zone
Looking for signs of selling absorption in HIGH VOLUME ZONE
Entry into long positions with more aggressive risk/reward ratio
Risk Management
Primary scenario: stop-loss below gap closure zone accounting for possible false breakout
Alternative scenario: stop-loss below high volume zone with margin for stop liquidation
Recommended to split capital between two possible entry points
Bitcoin has completed a sharp decline and is located in the critical gap closure zone. The chart shows two key technical elements: a resistance level in the upper part of the range and a high volume zone (HIGH VOLUME ZONE) significantly below current prices. Price has stopped precisely in the gap area, creating conditions for institutional players to make their decision.
Primary Scenario: Bounce from Gap Closure Zone
An immediate reversal upward from current levels is possible with subsequent movement toward key resistance. Gap closure often acts as a price magnet and correction completion point. If limit players are ready to defend this zone, a strong bounce is possible without testing lower levels.
Target Levels:
Movement toward the upper boundary of the range
Test of key resistance where price was previously stopped
Alternative Scenario: Test of High Volume Zone
Price may continue declining toward the high volume zone (HIGH VOLUME ZONE) located significantly lower. This area represents interest for forming a long-term reversal, as high volume concentration indicates institutional position accumulation. A more powerful and sustainable reversal upward is possible from here.
Key Levels of Alternative Scenario:
HIGH VOLUME ZONE — area for potential long-term reversal
Possibility of forming a strong base for upward movement
Trading Plan
For Primary Scenario:
Monitoring price reaction in current gap closure zone
Entry into long positions upon formation of reversal patterns
Target: movement toward key resistance
For Alternative Scenario:
Waiting for decline to high volume zone
Looking for signs of selling absorption in HIGH VOLUME ZONE
Entry into long positions with more aggressive risk/reward ratio
Risk Management
Primary scenario: stop-loss below gap closure zone accounting for possible false breakout
Alternative scenario: stop-loss below high volume zone with margin for stop liquidation
Recommended to split capital between two possible entry points
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
🎉 Join our FREE open Telegram channel! Everyone welcome! 📱✨ t.me/smart_day_trader
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.