The bottom’s in? Bitcoin and the altcoin crypto markets rallied 18.59% after touching 3330, driving some to pronounce that the bottom is in. While it’s yet to be seen if this prevails as truth, there are some interesting dynamics of what happened during the run up and subsequent move. This is the last uptrend since the previous move that occurred on from the 17–25 of January. The most recent move is a classic cup and handle, where price creates a “U” shape, followed by a price increase. in this case, Bitcoin slowly descended downwards to 3330, then rapidly moved into higher liquidity zones. The handle is created by sellers putting downward pressure on the price, demand is still increasing, creating a smaller u shaped consolidation formation. This type of price action is commonly identified as a bullish continuation pattern. Demand, in theory, has shifted to higher levels. Let’s check out where liquidity is now. Bitfinex Binance Bitmex The clear liquidity pockets are at 4000, which coincide tightly with projected support levels. But no one is committing to a move higher yet. The run up has brought in some new asks at 4000, but there is nothing above. This limits the strength of the move upwards. If the price does break higher, what are the limits? Well, the chart above shows the previous support and resistance levels for Bitcoin since the beginning of the year. The intermediate high from the end of January is now acting as current resistance. The next level would at 4100, which is the outer limit for 1 SD Value Area and also was the previous high from Feb 10. If we break north of 4000, our question will be “who’s selling?” I don’t think there’s a good answer. — — — — — cover chart patterns and trade setups every day. Would you like to learn more about crypto trading? Сheck out our educational platform Adara Academ y. We Get a free 1-on-1 trading session with our experts! Apply now to be one of the first 50 accepted applicants — Apply to join! Talk to us on Telegram — Adara Telegram Engage in conversations on Twitter — Adara Twitter — Important Note:The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on our Site constitutes a solicitation, recommendation, endorsement, or offer by Adara or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction. All Content on this site is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing in the Site constitutes professional and/or financial advice, nor does any information on the Site constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. Adara is not a fiduciary by virtue of any person’s use of or access to the Site or Content. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other Content on the Site before making any decisions based on such information or other Content. In exchange for using the Site, you agree not to hold Adara, its affiliates or any third party service provider liable for any possible claim for damages arising from any decision you make based on information or other Content made available to you through the Site.
