Bitcoin (BTC) traded $1,000 below weekly lows after the market opened on Wall Street on November 22 as BTC price recovery continued.
BTC/USD 1-hour chart. Source: TradingView
Bitcoin respects “very clear” key levels
Data from Cointelegraph Markets Pro and TradingView tracked the crypto markets as they recovered from the previous day’s sharp decline.
As news spread that Binance, the world’s largest exchange, would reach a $4.3 billion settlement with the U.S. Department of Justice, Bitcoin traders turned their attention to recent key price levels.
Daan Crypto Trades showed that BTC/USD is respecting the two-week trading range despite falling to $35,600 after the Binance event.
“Once again, it was a great rise and fall from the range low,” he said in part of his recent comment to X Subscribers (formerly Twitter).
“Pretty clear that the most important values in this area are 35.7K and 38K.”
BTC/USD tension chart. Source: Daan Crypto Trades/X
The corridor between $35,000 and $38,000 was equally interesting for optimistic market participants waiting for the next phase of the Bitcoin bull run.
This included popular trader and analyst Credible Crypto, who predicted some range activity ahead of an “impulse” higher.
“As others have pointed out, the spot premium is back. In my opinion, a bottom will definitely form here. Having said that, we expect the upside to be capped at around 37,000 and the downside at 35,000 for now as we form a small range here for a few days of accumulation before things get going,” he explained that day.
“According to my chart in the quoted tweet, I am looking for the lows at 35.5k to be reached before the conclusion of this accumulation phase and the start of the next impulse.”
BTC/USD liquidity data. Source: Credible Crypto/X
An accompanying chart of the Binance order book showed pockets of liquidity that define likely range highs and lows.
The 4-hour chart of BTC price is flashing
Fellow trader Jelle, who is also known for his bullish longer-term outlook on Bitcoin, nevertheless warned that buyer interest now needs to consolidate.
Related: How Low Can Bitcoin Price Fall?
“Although we have never hit a single low, Bitcoin still has a lot of work to do,” he said of the 4-hour chart, according to Binance.
“For the first time in this consolidation, we failed to make a higher low – and now we are back below the key level. The cops have to intervene here.”
BTC/USD 4-hour chart. Source: Jelle/X
However, over longer periods, Jelle discovered a breakout from a so-called “cup-and-handle” pattern – with a corresponding BTC price target of $48,000.
#Bitcoin’s cup-and-handle pattern broke out and directly broke the $30,000 resistance level!
The targets from here are $48,000 and new ATHs https://t.co/VcSfEzGySa pic.twitter.com/XHzeMtuh1z
— Jelle (@CryptoJelleNL) November 22, 2023
Meanwhile, in its recent order book change coverage, the monitoring resource’s material indicators suggested that whale selling was still ongoing.
Nevertheless, the overall increase in liquidity is an optimistic sign, the X commentary said.
I wake up and see some interesting activity on the #Bitcoin order book. #FireCharts 2.0 (Beta) shows both bid and ask prices rising, a sign of near-term bullishness after yesterday’s decline. No real surprise, but what you can clearly see in this chart is different from… pic.twitter.com/xgJj8AytZe
— Material Indicators (@MI_Algos) November 22, 2023
This article does not contain any investment advice or recommendations. Every investment and trading activity involves risks and readers should conduct their own research when making their decision.
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