BTC has been pretty weak of late. And with good reason.
Lots of profit taking happened at 12k, and a huge liquidity pool resides around that 12k and 11.8k level.
Needless to say, that was a pretty high probability resistance, and as we can see, it worked tremendously.
Let's have a look at a chart.
BTC had a pretty rangy day, but managed to drop below the mid point of the range (the yellow line in the middle). There was a ton of well pressure at the break of the level, and that level now acts as a resistance.
There's also a demand zone beneath, with confluence of swing low support. We tapped this level and immediately rejected from it, but we still sit below the 200 EMA(a historically strong support got BTC) and the demand zone as well.
I believe that there is a possibility we touch the liquidity pool at 10.8k before the week runs out. (The lower level highlighted in green)
The probability is high, as sellers are strong in this market.
Have a look at this:
There are a ton of 100x longs below the current support. These longs move down all the way to the low 11ks.
It is possible BTC whales nuke price down to those levels to fill up liquidity before pushing price back up.
This is one of the reasons I'm sidelined from BTC for now.
I'm also not in any alts. A common 2% move on BTC today caused a cascade of alt dumps on even large caps.
I personally won't be touching alts in this area either, unless I want to hold them for the long term.
BTC remains uncertain, therefore the entire market also remains uncertain.
What do you think comes next for BTC? Are you bullish or bearish? Let me know down below!