How Much Could Bitcoin Retrace?
The next buying opportunity
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Bitcoin - The Weekly Range
Bitcoin has broken back into its $43100-$52000 range.
In fact, one could argue that price recently rejected from the mid-point of said range and is now dipping.
Technically, previous Weekly Candle Closes above the black $43100 Range Low (blue circle) has preceded a dip into the Range Low for a retest.
Therefore a dip into the top of that $43100 level could indeed take place; it would be a healthy retrace.
Bitcoin - The Volume Gap
BTC is inside the $43100-$52000 range, recently rejecting from the mid-point of said range but what’s interesting about that mid-point is that that was the Volume Gap resistance.
According to the Volume Gap, price could continue bouncing between the two Volume Gap supports and resistances forever (i.e. $38000-$46000) until one of those regions breaks.
However I’d only expect that if the $43100 retest fails, as price would need to test the green Higher Low once again, which is confluent support with the bottom of the Volume Gap.