In mid-April, we wrote the article “Bitcoin – Make or Break?” We highlighted some key areas for the Bitcoin price that would decide the general direction of crypto over the near future. After failing to break back above $40K, Bitcoin has indicated to us the breakdown. So, what next?

What does the chart say?

We decided to take a further look into the volume profile for Bitcoin, taking the chart back to when it started its major move in October of 2020. In mid-April, the price sat just above VPOC (volume point of control). This is usually used as a strong support for price action. However, last week the price took a major fall. This has set the technicals up for Bitcoin to have a bearish run now.

Chart provided by TradingView

Let’s take a look at some areas of support below. The first area is $30,600, the bottom of the value area (value area is where 70% of volume has been traded). We could tie this into the psychological price of $30,000 too. The weekly candles have never closed below $30,000 since it first broke that price. Will we see large buyers step in again at this price?

If price falls below the value area, there are two zones which could see some support. Both are supports based on high volume nodes. These two prices are $27,000 and $23,000.

The final area is at $19,300. This is a very high volume node, the third highest area that price has traded. The only areas that have more volume are VPOC ($38,700) and the HVN at $47,500.

What do I think?

I know that being bearish on crypto is never a popular way to go. I believe $30,000 will see some good support and the price will balance around that level. However, if the price falls below that, $19,000 is my target to cover a short position.

In these areas of low volume, the price will move quickly through it. Bitcoin already has a habit of making quick moves. I think this will lead to a quick sell off below $30,000.

Please read our full disclaimers regarding the information published. The above is intended for informative purposes only and should not be taken as investment advice. Trading on leverage can result in losses larger than your initial deposit.

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