Bitcoin / US Dollar Perpetual Inverse Swap ContractBitMEX
Description
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Bitcoin bounced off the 4-Hour Bullish Order Block (OB), which is currently acting as a key support level right between the demand zone and supply zone. It was stopped in its track by the 4-Hour Bearish OB, currently acting as a key resistance level.
The bulls need to defend this 4H Bullish OB at all costs. If price breaks below the solid black line around $6360, the chances of a stop hunt at the $6311.5 level will be quite high, this is marked with an "X".
If this happens it would signal a bearish break in market structure, and the probability of price revisiting the demand zone below will be quite high.
To maintain the bullish momentum, I would like to see a close above the equilibrium of the 4-Hour Bearish OB around $6620, which would give the bulls a strong chance of retesting the supply zone above if they manage to hunt the stops around $6700 marked with an "X".
The bears need to defend the solid black line around $6680 at all costs. I will be looking to long a retest of the now Bearish OB once there is a clean break, targeting the supply zone above, and possibly even higher if the stops at $6830 are to be taken.
If price breaks to the downside with a clean break through the now Bullish OB, I will be looking to short a retest of this area, targeting the demand zone below, possibly even lower if the stops at $6066 are swept.
Until one of these 2 scenarios materialize, I will remain flat and watch price action as it develops.