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Bitcoin at $66,000 Major Support — Time to Buy?


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Video Transcript:

In this video, I analyze Bitcoin on the weekly chart using Volume Profile and show why the current heavy-volume zone around 66,000 can act as a strong support. You’ll also see the key resistance area above and how I plan the trade around this setup.

Hello everyone, it’s Dale here, and in this quick video I want to do an analysis of Bitcoin because I think that right now there’s a very, very good trading opportunity. Let’s check it out. What you see here before you is a TradingView chart with volume profiles, and you’re looking at the weekly time frame. This is the weekly time frame, so it shows the big picture of Bitcoin. As you can see, I have two volume profiles here. Let’s first talk about this one. The heaviest volumes in this whole area were right here, and the point of control is this line. As you can see, we are at that line right now. The price just made a pullback to this heavy volume zone. What this means is that right now I expect a reaction because this heavy volume zone represents strong support. The reason is that buyers who were pushing the price up in this massive uptrend were very active here, as you can see on the volume profile. Now the price has reached this place again, and I expect it to work as support because those traders should become active again. There should be strong activity again, which should push the price upwards.

That’s the volume profile on the left. In addition to this volume profile support, there is also another factor. In the past, there were two very strong reactions at this level. That means this level was strong resistance in the past, because the price reacted very strongly there. After the price broke through that resistance, it turned into support. This is an old price action setup that I like to use and combine with the volume profile, like here. We have the price action setup as well as the volume profile setup, and both point to this support zone. This is really significant because we are looking at the weekly chart. Those massive volumes and this strong confluence occurred on the weekly chart. I’m pretty confident there will be a strong reaction from this level. Right now we are at that level around 66,000, and this is exactly the support. What I expect now is a move higher from Bitcoin.

There is one thing you should be careful about, and that is a potential resistance standing in the way. That resistance is this heavy volume cluster above. If the price reacts from this support, then the level around 88,000 could act as resistance. It will be interesting to see whether the price breaks through it easily or reacts there. I wanted to mention this because it represents potential risk for a long trade from this support level. That’s my view on Bitcoin. Let’s see how it plays out.

 If you are interested in learning more about Volume Profile trading, I recommend visiting my website, trader-dale.com. If you click on Trading Course and Tools, you can browse my trading education and indicator packs. Right now we are running a sale, so you can get all four packs together in one discounted bundle. Thanks for watching the video. See you next time, and until then, happy trading.

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