As we can see from the screenshot, bitcoin has been in a sideways market from the start of January with a low of 33k and a high of 46k. As we are in a sideways market we will only be concentrating on levels inside of this range.
So, we can see that recently price has had a bounce off a weekly & daily level which is very nice, however there could still be some more downside. If there is, the levels I will be looking at are the following;
- .786 Fibonacci Retracement @ approx 36.7k.
- A previous VAL @ 35.7k.
- A previous Daily level @ 35k.
If we fail to hold these levels I could see us breaking out of the range.
If the recent bounce from the Daily & Weekly level holds and price continues to go up these are the levels I will be looking for a rejection;
- A local Fibonacci Golden Pocket confluencing with a ndPOC (Naked Daily Point Of Control) @ 38.8-39k.
- The .5 Fibonacci level confluencing with another ndPOC @ approx 41.4k.
- The POC of the whole range @ 41.7k.
- The Golden Pocket confluencing with a VAL of a previous range @ 42.3-42.6k.
If we pump right through all of these levels I will be looking at the top of the range to get a possible rejection.
When price is near these levels I will be looking on smaller timeframes for bearish/bullish divergences on my indicator at the bottom. Also, ensuring that the larger timeframes are pointing in the direction I want them to be.
Hope this was helpful, if anyone is unsure about the terms that I have used please feel free to comment and I will get back to you.
Thanks :)
