Bitcoin has been on a relentless tear, finding highs at almost 18.5k yesterday, before a sharp pullback to $17 from which we have now recovered about 50% to $17.8; staggering numbers to think about; it’s only to be expected that there will be supply and volatility at these levels given what the market has been through and the speed to which we have arrived here.
4 Hour chart
The 4 Hour chart shows highlights the trading range from yesterday’s high and low with the point of control being mid-range at $1775.
1 Hour Chart
The 1-hour chart shows Bitcoin is consolidating as we have previously, with support being found at the Weekly VWAP as we saw at $15k and $16k, we now see the same at $17k.
I have taken some hedged positions between $17.8-18k but will reconsider the position should the point of control be reclaimed and daily Vwap is recovered as support with $17.8k being the key level.
Image 5 below shows continued bid support when looking at the bid/ask ratio for Bitcoin. There is also still evidence of absorption in the order flow. Considering this alongside funding being relatively neutral and spot still sometimes leading price, it implies there are still spot buyers interested at these prices.
The crypto fear and greed index is currently at all-time highs, although this data only spans back to the start of the bear market.
The Decentrader short term KPIs show that price and network value has run away from network usage. This will resolve either with price reducing, or the network increases in activity. Normally the network activity leads price hence why there is a caution to pay attention to here.
Overall we are cautious given the price move and have clear LTF objectives to pay attention to around $17.8k. A move higher and we will be looking at the Philip Swift Golden ratio multiplier target around $19k. Downside corrections, we will be looking to trade back in around key fib retracement levels.
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Disclaimer: Nothing within this article should be misconstrued as financial advice. The financial techniques described herein are for educational purposes only. Any financial positions you take on the market are at your own risk and own reward. If you need financial advice or further advice in general, it is recommended that you identify a relevantly qualified individual in your Jurisdiction who can advise you accordingly.