Bitcoin is currently in a consolidation wedge with high volume right on top of the 23.6% Fibonacci retracement level, as well as the center of the pitchfork displayed above.
The growing volume suggests that we will likely see BTCUSD make a break higher in the near future. The shape of the wedge suggests that the break will probably happen by tomorrow at the latest.
Another important consideration is the volume profile. This suggests that there is a new range for BTC with strong support at $3700, strong resistance at $4200, and little support or resistance in between.
Due to the growing volume across exchanges, it is becoming ever more likely that we have seen the bottom of this bear market. Regardless of that, we will likely retest lower prices within the range mentioned above.
Nasdaq, Bakkt, The Square Inc. Cash App and possibly the VanEck Bitcoin ETF are all in the process of creating products that will tie up ever greater amounts of BTC in their systems. It is possible that the market will front-run these developments and the associated demand.
One other thing worth mentioning is that there is even less resistance (than in the range mentioned above) in the price range between $4200 and $4800. This means that if BTC breaks through the $4200 level there could be a swift move back to $4800.
The growing volume suggests that we will likely see BTCUSD make a break higher in the near future. The shape of the wedge suggests that the break will probably happen by tomorrow at the latest.
Another important consideration is the volume profile. This suggests that there is a new range for BTC with strong support at $3700, strong resistance at $4200, and little support or resistance in between.
Due to the growing volume across exchanges, it is becoming ever more likely that we have seen the bottom of this bear market. Regardless of that, we will likely retest lower prices within the range mentioned above.
Nasdaq, Bakkt, The Square Inc. Cash App and possibly the VanEck Bitcoin ETF are all in the process of creating products that will tie up ever greater amounts of BTC in their systems. It is possible that the market will front-run these developments and the associated demand.
One other thing worth mentioning is that there is even less resistance (than in the range mentioned above) in the price range between $4200 and $4800. This means that if BTC breaks through the $4200 level there could be a swift move back to $4800.
