Bitcoin Analysis for Today

Bitcoin Futures Analysis for Today

Financial Instrument: Bitcoin FuturesPrice at the Time of Analysis: 102,690

Key Levels to Watch

Bullish Above 103,600

• Why Bullish Above?A move above 103,600 signals that the price has surpassed the Value Area High (VAH) of yesterday. This level acts as a key resistance zone; breaking above it suggests buyers are gaining momentum.

• Profit Targets for Long Positions:

  • 104,650: A logical target based on the next resistance level and recent trading activity.
  • 106,050: A further upside target where bullish momentum may face stronger resistance.

Bearish Below 101,850

• Why Bearish Below?A break below 101,850 would place the price under yesterday’s VWAP, a key level indicating a shift in market control from buyers to sellers.

• Profit Targets for Short Positions:

  • 100,730: Yesterday’s Value Area Low (VAL), a significant support level.
  • 99,255: The VAL from two days ago, providing an additional bearish target.
  • 96,950: A level just above the POC and VAL from two days ago, serving as an extended target for downward movement.

Understanding the Tools Behind the Analysis

VWAP (Volume-Weighted Average Price)

VWAP calculates the average price weighted by traded volume, serving as a benchmark for fair value.

• Above VWAP: Suggests buyer dominance.
• Below VWAP: Indicates seller control.

Value Area Concepts (VAH, VAL, POC)

• Value Area High (VAH): The upper boundary of the price range where 70% of volume was traded, often acting as resistance.
• Value Area Low (VAL): The lower boundary, typically a support level.
• Point of Control (POC): The price level with the highest trading volume, often attracting price action.

Takeaways for Today

• Bullish Scenario: A break above 103,600 opens the door for potential gains toward 104,650 and 106,050.
• Bearish Scenario: A move below 101,850 could lead to downside targets at 100,730, 99,255, and 96,950.
• Trading Guidance: Use these levels to plan your trades and adhere to disciplined risk management.

Trade at your own risk. Visit ForexLive.com for additional perspectives.

This article was written by Itai Levitan at www.forexlive.com.