Over the last 24 hours, Bitcoin has successfully confirmed a swing failure pattern and is currently breaking out of a falling wedge - higher to come.
Price action as of current is searching for liquidity before a reversal occurs on the smaller timeframes. The current lows is a great area for a potential swing failure pattern to occur.
Price action is currently is approaching an inflection point where a strong expansion will be imminent. A local bullish case will hold once the current dynamic resistance is breached - more discussed in the technical analysis section.
It is important to note the Bitcoins price action is trading with a bearish trend on the higher time frame. The structure needs to switch bullish first for a new all time high.
Bitcoin has bounced from local support after a strong bearish expansion, it is now approaching a resistance zone where the range high and daily resistance is located - a rejection is plausible.
The current most important resistance is the VWAP and the .618 Fibonacci region that is likely to get tested on the next oversold bounce. Bitcoin now needs to finds its equilibrium before the next expansion.
Price action is also trending towards the pennant dynamic support for a bullish retest - holding this level is critical, more discussed in the technical analysis section.
Bitcoin holding the current low in the coming hours will show a sign of strength in the immediate short term - allowing for another rise towards Saturday’s high - more discussed in the Technical Analysis section.
Some important observations in the current price action on Bitcoin to take into consideration. There is a high timeframe confluence with the .618 and VWAP resistance - more discussed in the Technical Analysis section.
Over Last issues we have been discussing liquidity concepts and how market makers manipulate these areas. Bitcoin had a key high remaining which suggested liquidity to the upside - this has now been taken.
This current resistance levels is also in confluence with the .618 Fibonacci that we have analysed a few issues back. This levels has proved its significance over the past few weeks.
Liquidity is still considered above the current high, testing this area will full-fill the single print theory. The RSI is trading at its range mid-point, further consolidation is likely before it expands into oversold and or overbought conditions.
