Bitcoin trades below $40k, what to expect next?
Since my last Weekly Review much action has happened, as Bitcoin started to trade again below $40k. This has been a surprise for me, as I thought there were enough levels to reject before going below. But none got properly respected. What I might focus on now is trying to get some reasonable bearish targets as we don’t see any strength signs yet.
Firstly, I want to say that Bitcoin has been consolidating in a range this weekend, which gives so many reasons to test the $40.3k to take liquidity. What I mean here is that many stop losses are set above the range high, so market makers or whales try to trigger them in order to move price. After that we can either branch to a bullish or a bearish scenario.
A bullish breakout gives a short-term target of around $42.3k, which would fill all the imbalances or FVGs. Then I’d expect a bit more of ranging before a proper breakout to happen (which I wouldn’t rely on just in case).
Contrarily, in a bearish scenario I’d want to see the $37k liquidity taken and a hard rejection from that level to keep bullish long-term structure.
Firstly, I want to say that Bitcoin has been consolidating in a range this weekend, which gives so many reasons to test the $40.3k to take liquidity. What I mean here is that many stop losses are set above the range high, so market makers or whales try to trigger them in order to move price. After that we can either branch to a bullish or a bearish scenario.
A bullish breakout gives a short-term target of around $42.3k, which would fill all the imbalances or FVGs. Then I’d expect a bit more of ranging before a proper breakout to happen (which I wouldn’t rely on just in case).
Contrarily, in a bearish scenario I’d want to see the $37k liquidity taken and a hard rejection from that level to keep bullish long-term structure.