I shared the potential movement of $BTC on July 22, and we all saw how it played out.
Since this play, the price of bitcoin has been moving in a very consolidated zone. The F/G index is at 67, which shows the market is not bathing in greed but is looking for any opportunity to jump in. On the other side, bears are waiting to capture the market if it feels any weak. Can liquidity zones help in finding some solution? Let's see.
The high saturation liquidity lies at $120k and $116,500 and the current market is exactly in between of both. The market is so much confused right now and it feels almost impossible to predict what way the market will move. But we can always check RSI and balance of Power.
If pay some close attention to the movement of price on 4-hourly chart, we would notice that even when the price was moving up and down, the RSI was moving in a very defined way around 50. Was this the highlight of what was coming ahead, yes possibly. Various parts of chart starts to flash the upcoming market movement.
Looking at the chart on hourly time frame, I found this. Another descending triangle has formed over the existing one. This happens at very rare chance and given another perspective or redefining the original triangle.
First if we take this new triangle into consideration and along with the liquidity map and RSI, it looks like this (marked with black) can be the possible courses of price movement.
But because the chart was not satisfying me, I thought to update the triangle with the new data and voila, chart started saying another thing.
With the triangle now updated I added the fib levels and it was clear that the current price is stuck between 0.382 and 0.5 levels with the former acting as support and later at resistance. The current price is also getting support from MA 20 and 50. At present the there are more shorts open in the market than longs, means traders believe the price will fall down and to think that is absolutely normal looking at current market conditions.
We might have to wait a few hours before it takes a side, but if 0.382 level fails to hold the price, it might plummet to level 0 at $115,700.
That can be a good location for a trade but trust no one, use your judgement for your trades as that is your responsibility.
