Why did we stop at $4,300 – and where is the next stop?
I used the volume profile tool called visible range and got the levels that you see.
On the right of this weekly chart you can see the visible range indicator. It displays trading activity over a specified time period at specified price levels. I marked the High Volume Nodes, the horizontal peaks of volume around different price levels. The peaks show the price levels at which past consolidation took place. This levels can serve as support or resistance, depending if the price above or below the level.
Currently the lower $4,000 area acts as pretty decent support. The 6,500$ area, on the other hand, seems to be a brutal resistance area – if we somehow manage to climb back up.
Visible range doesn’t only tell us where we can bounce. Where trading activity volume was low, seen as horizontal valleys, the market is much more likely to just cut through that price range. Thus, if we break below the $4,000 area, the next logical support waits around $2,800.
Full post: www.cryptotradeacade...8-bitcoin-bottom-in/
On the right of this weekly chart you can see the visible range indicator. It displays trading activity over a specified time period at specified price levels. I marked the High Volume Nodes, the horizontal peaks of volume around different price levels. The peaks show the price levels at which past consolidation took place. This levels can serve as support or resistance, depending if the price above or below the level.
Currently the lower $4,000 area acts as pretty decent support. The 6,500$ area, on the other hand, seems to be a brutal resistance area – if we somehow manage to climb back up.
Visible range doesn’t only tell us where we can bounce. Where trading activity volume was low, seen as horizontal valleys, the market is much more likely to just cut through that price range. Thus, if we break below the $4,000 area, the next logical support waits around $2,800.
Full post: www.cryptotradeacade...8-bitcoin-bottom-in/