Bitcoin price looks like a scalpers market; here are the levels to be aware of

By April 26, 2022Bitcoin Business
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  • Bitcoin price could run back up towards $44,000 to complete a head and shoulders pattern.
  • BTC price is printing a bullish hammer on the daily chart.
  • Invalidation is a breach below $36,400

Bitcoin price could go for a countertrend rally. The risky countertrend move could unfold impulsive as wave C of B.

Bitcoin price could rally up then back down again

Bitcoin price could continue to fake out traders as Smart Money has completed a successful liquidity hunt two Mondays in a row. The BTC price likely trapped traders looking to short the digital asset into $33,000. The BTC price could continue to rally higher in hopes of liquidating as many short traders as possible.

Bitcoin price trades at $40,166 after today's fakeout. If market conditions remain the same for the next few hours, the bulls will have established a bullish hammer candle which could spark a new uptrend rally for the Bitcoin price. The volume indicator profile looks poised for bullish price action after today's trading session.


BTC/USDT 1-Day Chart

Analyzing the current downtrend scenario, the potential bull run into $44,000 would finish a very classical head and shoulders pattern. Traders should keep in mind the uptrend rally would be considered wave C of B within the pattern. Thus stronger drops could follow once the target is reached. Nonetheless, it is best to take this trade idea one step at a time.

Invalidation for the short-term bullish thesis is a breach below $36,400 which forecasts a 1-1 setup for traders aiming for the $44,000 target. If the bears manage to breach $36,400, the $33000 target would be the next bearish target resulting in up to a 17% drop from the current Bitcoin price.

TM/BTC/4.25.22 PT2

BTC/USDT 4-Hour Chart

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