Bitcoin's pivotal shift: Anchored VWAP

As of May 11, 2024, Bitcoin is showing bearish signs as the Anchored VWAP (Volume Weighted Average Price), which previously acted as a support level, is now serving as resistance. Here's a quick update on Bitcoin's market dynamics:

Bitcoin's bearish shift: Anchored VWAP now acts as resistance
Bitcoin's bearish shift: Anchored VWAP now as resistance

Can bitcoin bulls protect the anchored vwap (purple line) at apx 61k?

Can bitcoin bulls protect the anchored vwap (purple line)?
Can bitcoin bulls protect the anchored vwap (purple line)?
  • Anchored VWAP Transition: Originally a support, the purple line in the chart has shifted its role, indicating increased selling pressure. See the purple line in the above chart.
  • Current Market Position: Bitcoin is trading below the Anchored VWAP, suggesting that sellers are in control and might continue to drive the price down.
  • Implications for Traders: Traders should watch for potential resistance at the VWAP level for bearish confirmations, signaling possible short opportunities.

This change in the role of the Anchored VWAP from support to resistance highlights a critical transformation in market sentiment, hinting at a bearish outlook for Bitcoin in the near term.

My bitcoin technical analysis video

Bitcoin technical analysis and BTCUSD price forecast: A bullish perspective for upcoming sessions

📊 Bitcoin Technical Update: Key Support Levels to Watch

In the latest Bitcoin chart analysis, we're closely monitoring a potential bounce from two significant support levels, which could signal an opportune moment for traders. The Volume Weighted Average Price (VWAP) anchored from the notable low on May 1st, 2024, along with the March 20th low, are forming a confluence of supports. This dual support zone, as indicated in the chart, offers a compelling area for a potential reversal.

Watch the possible bounce from the anchored VWAP around 61k
Watch the possible bounce from the anchored VWAP around 61k

While these support levels are not guaranteed to hold, their historical significance makes them stronger candidates for a potential price reversal compared to other arbitrary levels. Traders should keep a keen eye on these 'junctions' as potential indicators for entering long positions, especially given the current market dynamics displayed in the chart. Remember, while these supports offer interesting opportunities, they are not promises; always manage risk wisely.

Welcome, crypto investors and traders. Today, I am delving into a detailed technical analysis of Bitcoin with the above video. With recent price movements and key technical levels, there's an exciting opportunity for those looking to go long on Bitcoin. Let's break down the analysis and discuss potential trading strategies.

📈 Key Resistance and Support Levels

  • Critical Resistance:The pivotal levels to watch are $62,195 and $60,851. Price reactions at this naked PoC key price level indicate significant market attention.

🟡 Trading Strategy: Going Long with Strategic Stops

  • Immediate Strategy: After a slight decline over the past few days, Bitcoin presents a promising long entry point. A short stop-loss strategy is advisable to minimize risks.
  • Stop-Loss Tip: Set your stop just below $60k.

🔍 Technical Indicators and Patterns

  • Yellow Channel: The mid-channel line serves as a minor resistance, which if broken, could signify a stronger bullish momentum.
  • Purple Trendline: With three prior touch points, this trendline - see the purple line in the video above - is another importnat marker for potential price breakout to the higher side.

🚀 Potential Upside and Profit Targets

  • Short-Term Target: Look to take initial profits around $63,000 and near the mid-channel line at approximately $64,660.
  • Long-Term View: If the momentum continues, riding the wave up to $70,000 could yield a substantial reward, with a potential 9:1 reward-to-risk ratio.

🌟 Medium-Term Outlook

  • Bullish Sentiment: The medium-term outlook remains bullish with expectations of breaking higher resistance levels in one to two consecutive attempts.
  • Market Dynamics: Resistance levels often require several tests before a breakthrough; the upcoming attempt could be a decisive fourth or fifth try.

💡 Trading Tips

  • Market Timing: If you're catching this analysis a bit late, smaller timeframes may offer viable entry points. AGAIN - ENTRY AROUND The pivotal levels $62,195 and $60,851.
  • Risk Management: Always trade within your risk tolerance and consider partial profits to secure gains.
  • You may be interested in additional trading ideas for bitcoin at TradingView.com

🎯 Conclusion

While the bullish signals are not yet strong, this can be an early entry for the high risk vs reward trader. Remember that trading involves risk, and it's crucial to approach each trade with careful consideration. Stay tuned to ForexLive.com for more updates, and as always, trade wisely and well.

Thank you for checking out ForexLive.com, and good luck in your trading endeavors!