The daily candle has not yet closed, but BTC is on it’s way to print a -5% candle today. This pullback puts BTC very close to a strong support level that has been on our radar for several days.
This support level is where many buyers should be stepping in and purchasing BTC. But we also know that many traders place stop losses based on support levels, and they are likely watching the same level we have shown on the chart. So if we see price wick down into the area drawn as a ‘High liquidity zone’, I would not be overly concerned as that will be removing many long positions from the market.
Many altcoins may continue to bleed out, but for BTC this 1Day chart is building some bullish ideas. Before we see a move higher, I would like to see a couple instances of bullish divergence building on shorter timeframes (1-4hr).
The daily candle has not yet closed, but BTC is on it’s way to print a -5% candle today. This pullback puts BTC very close to a strong support level that has been on our radar for several days.
This support level is where many buyers should be stepping in and purchasing BTC. But we also know that many traders place stop losses based on support levels, and they are likely watching the same level we have shown on the chart. So if we see price wick down into the area drawn as a ‘High liquidity zone’, I would not be overly concerned as that will be removing many long positions from the market.
Many altcoins may continue to bleed out, but for BTC this 1Day chart is building some bullish ideas. Before we see a move higher, I would like to see a couple instances of bullish divergence building on shorter timeframes (1-4hr).