Combining volume profile in technical analysis: Bitcoin's target is $21250 (apx 5% lower)

An effective bitcoin trading method based on volume profile (AKA market profile)

Combining volume profile with technical analysis may be an effective trading approach, especially for Bitcoin Bitcoin Bitcoin is the largest and world’s first digital currency launched back in 2009 by the entity, Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it functions without a central bank or single administrator. Rather, Bitcoin instead can be sent by peer-to-peer (P2P) networking, which is itself absent of any intermediaries.Instead of being a physical currency, Bitcoins represent pieces of digital code that can be sent and received across a kind of distributed ledger n Bitcoin is the largest and world’s first digital currency launched back in 2009 by the entity, Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it functions without a central bank or single administrator. Rather, Bitcoin instead can be sent by peer-to-peer (P2P) networking, which is itself absent of any intermediaries.Instead of being a physical currency, Bitcoins represent pieces of digital code that can be sent and received across a kind of distributed ledger n Read this Term. When we examine the daily time frame over the span of around 260 days starting in June 2022, please observe that the BTCUSD price rejection at 25,770 resulted in a double top with a high of 25,212 on August 16th.

At a current price of $22,376 and using this bitcoing price projection, the following price level is predicted to be around $21,250. Key price magnets include the daily pivot low at 21,376, the weekly 20 EMA at 21,116, and the value area high at 21,289.

Because it is assumed that there are enough people who are keeping an eye on these price magnets, the targets that they are looking at have a better chance of being reached. The price action in the range of $20,358 to $21,350 should be monitored. If BTCUSD gets there, we want to see how price will react there, for example a 'V recovery' on a smaller timeframe (eg 4 hour), or buyers still not excited to buy there.

Traders should proceed with caution while dealing in Bitcoin because of the high degree of risk involved. A trader's success in the Bitcoin market can be improved by including a volume profile into their technical analysis. As the market develops, ForexLive .com will provide further perspectives and future updates.