1) Consolidation: price ranges between two levels and consolidates between that area.
2) Expansion: Price action breaks out of the consolidation with high volatility making rapid impulsive and corrective waves, prior to the main trend direction to be determined.
3) Trend: The price action finally follows and market has a fixed sentiment where the trend takes place and the main direction of the financial instrument price goes.
Observation
The market already passed Phase 1 "Contraction or Consolidation", and has commenced with Phase 2 "Expansion". The first top POI and the red Liquidity price line below it represent two possible price targets for Bitcoin . Why? The first top POI represents a previous strong support where all Long Positions have been killed, making it a strong resistance and a POI price that can be in the market makers' favor. The green line represents a very important price level where big institutions benefit from manipulating the price at that level, lots of SL hunts will be around there.
Conclusion
My Profit Target for Bitcoin is :
TP 1: white POI price level ~42k
TP 2: red Liquidity line price level ~39k
TP 3: green consolidation line price level ~35k
This isn't a financial advice. This is a personal trade I am in currently, and I am just sharing with you my theory. I appreciate you guys. Don't forget to like my idea if you agree with my analysis, or and comment for your thoughts and questions.
Best Regards,
Thank You
