On the hourly time frame it is clear that BTC is within a rangebound environment. Using key levels such as the weekly highs and lows with Mondays highs and lows to to paint a picture of where support and resistance may be.
In the "weekly outlook" post for this week I suggested a retest of the $108,500 area, an orderblock that pushed prices lower and is notorious for protecting Stop losses of the shorts that pushed price lower, nearly instantly as the week starts we get that move to sweep the supply zone and stop hunt the short trades.
After a successful sweep the swing fail pattern typically follows when in a rangebound environment or absent of a trend. This structure plays out and the sell-off follows.
Price breaks through the Monday low with zero fight so momentum is with the bears in the low time frame. Should momentum continue the previous week low is @ $102,500 which is in line with HTF key level too.
RSI is also entering the oversold zone and in a rangebound environment can be when price reverses direction, as seen by the previous Monday High and Previous week low.
With FOMC just over 24 hours away volatility usually follows. No rate cut forecast however many think the interest rate should be brought down in line with inflation as the ECB has already done.
In conclusion, BTC is in a clear rangebound environment on the hourly time frame.
Stop loss hunt/supply zone sweep and then SFP, the LTF momentum is with the bears going into FOMC.
Next point of support at $102,500 (Previous week low) and could be boosted by the oversold RSI.
An FOMC rate cut should be bullish although currently thought to be unlikely.
In the "weekly outlook" post for this week I suggested a retest of the $108,500 area, an orderblock that pushed prices lower and is notorious for protecting Stop losses of the shorts that pushed price lower, nearly instantly as the week starts we get that move to sweep the supply zone and stop hunt the short trades.
After a successful sweep the swing fail pattern typically follows when in a rangebound environment or absent of a trend. This structure plays out and the sell-off follows.
Price breaks through the Monday low with zero fight so momentum is with the bears in the low time frame. Should momentum continue the previous week low is @ $102,500 which is in line with HTF key level too.
RSI is also entering the oversold zone and in a rangebound environment can be when price reverses direction, as seen by the previous Monday High and Previous week low.
With FOMC just over 24 hours away volatility usually follows. No rate cut forecast however many think the interest rate should be brought down in line with inflation as the ECB has already done.
In conclusion, BTC is in a clear rangebound environment on the hourly time frame.
Stop loss hunt/supply zone sweep and then SFP, the LTF momentum is with the bears going into FOMC.
Next point of support at $102,500 (Previous week low) and could be boosted by the oversold RSI.
An FOMC rate cut should be bullish although currently thought to be unlikely.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.