22 Mar BTCUSD update. The magnificence of number 13
Sunday is a good day to watch for the weekly/daily chart and analyze the wide picture. Here is the 1D bar chart, what does it tell us?
The market is developing within the orange downward channel.
1] No demand day (6th of March) around the top line of the orange channel. Note also, the high of 6/Mar appeared below the 50% half-way-back level between high of 13/Feb and low of 01/Mar. This is a bearish sign.
2] Super Supply Bar. The volume is extra-high, the progress is also extra high. So, the super efforts of bears gained a lot of results. Chart claims – 8k was overvalued bid per coin. Super confirmation of the weakness from 06/Mar.
3] Strength entered on the 13th/Mar. Price bounced up from the bottom line of the channel. 4k was the level where bitcoin was undervalued. As soon as price penetrated psycho 4k level (stopping out buyers and welcoming break-down-panic-sellers into Trap), professional buyers activated. Bar closed on top amid extra-high volume. This is a sign of strength.
4] Secondary reaction (in terms of Wyckoff) into the zone of the previous Panic. Bears reached only 4500 level. Note the volume. Despite it is higher than average, it is much lower than the 13/Mar reversal bar. So, bearish pressure decreased. Selling flow was exhausted (absorbed by professional buyers).
5] Demand bar. Strong close, breaking up above the previous day highs. Bulls revealed their existence. This is a good sign for crypto enthusiasts.
6] But the 20/Mar day informed – bulls faced trouble. Too much supply caused the price to close far away from highs amid an increase of volume. Note also two facts – a) round number 7k is near, b) 50% half-way-back-level of big decline from 13/Feb high to 13/Mar low.
Yes, the recent massive 1-month selloff got its extremums both on the 13th day’s. What is it – coincidence of magnificence of number 13?
What is next?
4k – level of confirmed support
7k – level of confirmed resistance.
While the price is holding below the level of 7179 (50%), bearish ideas have more odds.
Outlook – slightly more bearish.