Is Bitcoin going to range low again?
Last week Bitcoin tried to break out of the range, but it failed again. The break outs that are happening as of late do not really have any conviction behind it. Volume remains low and a lot of the major altcoins are printing new lows. That the altcoins are making new lows is something that concerns me. The whole ‘funding game’ is something that you do not really want to see in a market. Major players are pumping specific assets and are earning a lot of money from it. Yes you could play into it, but it is something that for the majority of people is quite difficult to do so. There is no new money coming in and everything looks like it is bleeding to death.. As most of you know, Bitcoin will always be the leading factor, so let’s dive into the price action of Bitcoin to see where we are and what we can expect over the coming days
Weekly timeframe
When we look at the really high timeframe, I would still say that we are going down. The main reason for that is due to the story of internal range liquidity towards external range liquidity. We have tested the internal range liquidity multiple times now. We still have an external range left open in the form of a set of equal lows. Equal lows are an easy draw on liquidity for price, so when we are purely looking at the weekly timeframe for Bitcoin, it is likely to say that we are going to see a move lower in the first place.
Bitcoin is back into the range
Something that is inline with a bearish bias is that Bitcoin dropped back into the volume range and it is trading in between value area high and low. We had a failed auction above the range high and we had a drop back into the range. When we strictly look at the principals of value it is likely to see a move towards the value area low.
Daily timeframe
When we take a look at the daily timeframe we can see a nice level which is in confluence with the Daily Fair Value Gap. The Daily Fair Value Gap is a level which could act as resistance. Besides that, it is again a form of internal liquidity and as you should know by now, it is likely to seek external liquidity next.
ETH with a push into the daily orderblock
Whilst writing the newsletter I noticed that Ethereum made a pretty significant jump towards the upside. However the price is hitting a crucial area in the form of a Daily Orderblock. Flipping these kinds of levels will be crucial to get towards higher prices. However the development of the overall price action on Ethereum is pretty nice and it looks ready for higher prices.
ETH looks ready for range high
As mentioned before, looking at the overall price action it looks pretty good. Yes, the price action is really slow, but that does not matter. We hit the 4H Fair Value Gap nicely and we had a good push towards the equilibrium of the current range. If price keeps acting strong we could see a push towards range high.
In conclusion, there are arguments to be made for a move lower, but if we see a continuation of the most recent strength, then we could see a move towards higher prices, but we will see what is going to happen eventually.
Have a nice day!
Written by: Daan Foppen
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