(Kitco News) –
Bitcoin technicals are looking very interesting at the moment. The price has retraced from a major level at $52,944 and made a new lower high lower low pattern. Even though this has happened it’s hard to know if this is a retracement from the move higher that started in July or a change in trend for a new trend lower.
There are some good clues on the chart. The first is this current bull flag formation. If the price breaks out to the upside it would be a great signal for the bulls.
Also, the price is sitting at a big support level marked by the orange zone. This level was a resistance back in January and it was used on two other occasions. In addition to this, it is a low volume node on the volume profile. This confluence of events means it’s a strong zone but supports are there to be broken sometimes. Incidentally, this is is a 50% Fib retracement zone (not shown on the chart)
If that is the case and the price moves lower the volume point of control (VPOC) would be the next place to look. On the upside, the previous wave high could be a good initial resistance for the bulls. As mentioned previously the bull flag break is the first point of call.
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