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BTCUSD Looking to correct. Potential entry points. for COINBASE:BTCUSD by Detective_Conan

Context
BTCUSD finally broke down from its uptrend channel , signaling a smaller trend change. Given the bigger overall trend is down, this is our first Higher High in since Jun 15. This uptrend is to not be ignored because it shows that there was way more demand than supply which could mean that the big players have soaked up most of the supply that they can. This fast move up will lead to 2 things. 1)People that missed out on a good long entry and are waiting patiently for an entry on support can start aggressively entering the market. 2) Sellers or Big players come in heavy and overcome buyers to start a long squeeze chain reaction. We’ll go down as fast as we came up.

Never the less, we should be prepared for some upcoming situations, but we’ll solely be focusing on possible entry points for longs.

The 1 Daily Chart

We have finally broke above our EMA ribbon to the upside for the first time in 5-6 months time signally a trend reversal. BTCUSD is currently testing PoC of this wave and also a local trendline support. But with the amount of shorts opening, BTCUSD could maybe make a retrace. As seen above, green boxes represents potential entry points that I find are good if we can break down from PoC. First box is at 37.3k – 38.3k, second box is 36.2k – 36.7k, third box is anywhere from 33.7k to 35k.

First Green Box

91 DAILY EMA held support once and has potential to do so again. There is also a high volume node in the area. Going on the 4HR, EMA’s are still in a bullish uptrend which usually means you can buy on EMA support. We also have a .618 retrace of our local low to high in this area.

Second Green Box
Lower end of our DAILY EMA ribbon. This level here, is at the low end of our Volume Area. Has a potential to be the lower end support of Local range. There was a huge amount of longs that opened around this range. I suspect if they haven’t closed out their long positions yet, they could fuel a long squeeze to upper end of 33k-35k. Which leads us to our Third Green Box.

Last Green Box
This is where I think if a big long squeeze does trigger after the liquidity grab below 36k . There is a volume node on this area after 36k . BTC has potential to become very volatile around this area. But I can’t ignore the fact that this area is the .618 of our fib retracement of this whole wave up. Chances are we might not make it this far but it still has some credibility depending on how the market reacts to the long squeeze.

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