My last article pointed out a strong confluence area of time and price later this month and that we would more than likely trade below the 10,000 area before having a responsive buying move to the topside. More importantly, we have had a very strong bounce off of the 9000 area.
We have some extremely bullish signals here based solely on price action.
- The last 8-hour candlestick, the large red candlestick, shows our final push and exhaustion participation. What we have here are late sellers who have finally decided that they are in much pain to continue any farther and have capitulated; the proverbial weak hands.
- We have very strong support zones at the 10000 level and slightly below the 9k level with a strong support angle. The buying at this level is enormous. One of the greatest indicators of the power of this impending reversal is this current 8-hour candlestick which is forming to be a very, very strong engulfing candlestick.
- Notice the sheer volume of the current candlestick and the volume preceding it. When we see increasing volume as prices go lower, we know that this is a signal of reversal coming. Volume almost always precedes price.
- The most important area for Bitcoin to move is to the 14600 area. If we get a nice hold above that then the 15000 area is an easy move and hold for the next drive to all-time highs.