BTC Analysis and Key Levels to Watch

2023년 1월 18일

BTCUSD.P

As traders, we must always start our analysis with higher-term timeframe ranges. Recently, we saw the price break to the upside, and currently, it is testing the value area low of the previous range. The horizontal fib 0.618 from the high to the current low acts as a resistance.

If we zoom in on the lower-term time frame, we can see that we are forming a range that started on Friday and continued over the weekend. A fixed range tool gives us significant levels ranging between 20700- 21250, which is almost a 4% range. This should be our main trading idea.

Yesterday, we saw a push to the downside, which touched the value area low of the range, a swing failure pattern of the previous low, and followed with a nice buyback. The price started to claim the point of control and daily VWAP, and after some consolidation near VWAP, the price started pushing toward the top of the range, where we got another swing failure. After getting accepted back from the SFP level price continues ranging.

However, sooner or later, we all know this range will break to either upside or downside. As a trader, we need levels, both to the upside to back up the bullish scenario and to the downside for the bearish scenario. At this point in time, I expect more upside price action. On the upside, we have the NSPOC (Naked Session Point of Control) level at 21725, the weekly level, the fib level 0.618, and the previous range VAH (Volume area high) level around 21827.5.

But if the price breaks to the downside, we have a little consolidation around the 18375-18850 area; we do have VAL of the previous range along with the last support area. So we can expect a reaction here. But if the momentum is strong, then we can expect lower. We have daily naked points of control at $17,725 and $17450, along with 0.618 fib level around $17,550. I will expect some reaction here.

In conclusion, it's crucial to constantly keep an eye on critical levels such as Current range volume areas and horizontal fib levels, as they can be important in determining the market's direction. Always have a plan and be prepared for bullish and bearish scenarios. Happy trading!