Yesterday I told you that the $50k is going to be the highest price for BTC before the new huge dump. Today I found the nice price action model which can explain why this level could be the reversal point.
I started to study VSA(volume-spread analysis) and want to use my knowledge on practice. Last 2 weeks I understood that was able to make profit only because the proper money management, but my predictive power is low. I found that VSA is one is the best way to understand the market and just started to learn it, please don’t judge me harshly. Let’s take a look at the consolidation before the last pump it was with the low volume, that’s why the Bitcoin price did not need a lot of effort to maintain the price. Thus, the buying volume shifted the price higher easily. If we take a look at the current consolidation we can notice that the volume increased dramatically. Moreover the large volume candles are at the consolidation’s upper band. It means that the sellers activated here. If we combine this knowledge with the RSI divergence we can anticipate the local correction.
To determine the correction levels let’s use the Fibonacci golden pocket = $44500. Here will be the nice local long trade entry point. The price target for such corrections is the Fibonacci zone 27 = $50000. Here is the potential short signal could be flashed, but it will be later.
Guys, I kindly ask you to write about your experience of VSA(volume-spread analysis) trading and Wyckoff methodology. Thank you!