BTC - Compression compression compression
2025-01-24
Category: None

Like the title suggests, we're still compressing in this developing new value area above the big range value area.

I've merged the profiles up here to give a better idea of where the high and low of this value is forming at the moment and allow us to look through the choppiness of it all.

While price seems to move very aggressively from one side to the other, so far we always bounced back inside after each deviation.

We can identify clear supply above 106k and demand below 102k. It is not price crossing these levels that would make me bullish or bearish, but how price is behaving once these levels get tagged: slow grind and twap for bulls, quick drop below for bears. There is the assumption that slow bleed usually leeds to a big nuke, but in reality it leeds more often to late shorts piling into support, then lows start holding and bears puke.

Pattern that works better for continued downward price action is support holding but each bounce is smaller, then a quick drop.

For intraday continuation moves, we seem to be respecting the first vwap band, vwap tap could give a decent reaction at first contact. Otherwise daily poc would be where I look for longs as well.