Although Bitcoin has not yet shown a serious movement on the monthly chart, our analysis made last week is valid.
We can think that its continuation as a red candle after the monthly opening may bring along relatively medium-term correction levels.
Our support levels that we need to follow on a monthly basis
It comes out as $23,700, $21,600, $11,800.
While Bitcoin’s movements continued in a certain range in the last 3 weeks, MicroStrategy bought 1,045 Bitcoins for 29.3 million dollars, increasing its total assets to 140,000 BTC, which exceeds 12.6 billion dollars. However, the fact that this news has not had any effect on the price of Bitcoin and the levels are still not exceeded, may be a harbinger of hard movements in Bitcoin.
In this sense, it will be healthier not to receive loaded transactions without leaving the range it is in.
If we look at the weekly candlesticks, we are in areas where volumeless price movements continue and it is not possible to make a clear direction forecast.
As a region, it would be worth mentioning that Bitcoin price has the potential to pull back since it is located within the resistance areas.
In the daily view, the resistance level of $30,800 has not been tested yet, and it is possible that short-term prices will be pushed into these regions, violating the liquidation levels for futures traders. I think you will understand what we want to say clearly by adding the liquidation graph in the sub-area.
Besides, our daily support zone is $26,868, $25.546, $24,730.
Bitcoin liquidity map
This chart shows the liquidation areas of traders using 3x, 5x, 10x leverage. It shows the liquidation areas for both long and short positions, i.e. for both buying traders and selling traders.
Bitcoin is expected to rise to the $28,480 band in the 4-hour timeframe, followed by a retracement of $1000 and a decrease to the $27,000 band.
As a result of the last 1-week analysis, we observe that it has not been able to make new peaks, which indicates that the volume and purchasing power have decreased, and that the expectations are bearish.
We can state that as long as the price continues in the symmetrical triangle range, it cannot become clear and will form a net price only if it goes out of the area.
Triangle forms indicate that whichever direction the breakdown takes, it will come to that region with a focus on selling or buying.
Our short-term support area is the $27,700 resistance area at $28,500.
In the weekly structure, it is seen that the price is in a decreasing trend within the channel. In some places, the response of the EQ (0.5) region, the midpoint of the channel, and the price holding support the validity of the channel.
The price has formed a bullish crab on the diary and has passed the first profit point. The second take profit point is around 1.12. At the same time, since this place has passed the level of 0.618, possible price movements on it can be considered as a seller zone.
The bullish look continues in the hourly structure. With the continuation of the structure breakdown, the price of 1.12 in the next upper time frame can be visited. As a secure entry zone, reception can be made from the receiver zone between swing low and swing high in the existing structure. For positive confirmation, support should be taken from the 5-minute chart.
The positive trend continues under weekly. In December 2019, the correction of the propulsion movement was finished, creating a new structure break. It made a new peak in August 2020. This peak has left liquidity and has not been taken yet. At its current location, the price is close to both the underlying price gap and the liquidity zone.
After the price made an upward market break in the daily process, the Fibonacci retracement received a reaction from the region within the 0.618-1 levels and continues its upward movement. When the current price is monitored, the liquidity at $2,075 seems more likely to be taken. However, after the voluminous rise last week, when the RSI is also observed, it is likely that the price will either buy liquidity or pull back a little beforehand. The RSI is falling in response to the rising price, which suggests that buyers are less willing. The price retracement can be considered as a buying opportunity because the positive structure of the market continues in the high time frame. Explanations were made in the hourly time frame for the possible points that the price could reach.
At the time of its evaluation last week, the price made its last liquidity purchase before $2,075. All that remains is to take the last liquidity above. Just like on the daily, the hourly RSI is in a descending trend. With the pullback of the price, it is expected that the imbalance will be filled completely or partially, the RSI will come to the oversold region and new buyers will step in and reach the above target.
I’m a private trader of over 7 years, based in Istanbul.
All trading and research are my opinion, not investment advice.