Bitcoin (BTC/USD) on a 2-hour timeframe

Oct 2

General Overview of Price Action:
Current Price: Bitcoin is trading around $60,832, which shows a slight downward movement.

Support and Resistance Zones:

• Resistance Levels: The chart highlights two important resistance levels:
  
• $64,471 (marked as previous resistance).
  
• $67,616 (higher resistance, likely from a previous major swing high).
  

Support Levels:

• The current price is near $60,000, which has seen significant volume activity in the past (based on the volume profile).
  
• Below that, the next key level of support is around $55,000.
  

Volume Profile (VRVP):

• The Volume Profile shows that most trading activity occurred around the $60,000 range. This indicates that it’s a high-volume node (HVN), which typically acts as strong support or resistance.
  
• Lower Volume Area (LVA): There’s a drop-off in volume below $60,000, meaning if the price breaks below this level, it could move quickly to the next volume support level around $55,000.
  

RSI (Relative Strength Index):

• The RSI is currently showing a reading of 27.41, which is oversold (below 30). An oversold condition suggests that the price is likely due for a short-term bounce or reversal.
  
• Previous dips into oversold territory (RSI below 30) have resulted in temporary price recoveries. This suggests that Bitcoin might be reaching a local bottom.
  

Potential Scenarios and Entry Points:

Bullish Scenario (Rebound from Support):

• Entry Point: Since Bitcoin is at the $60,000 support level (a high-volume node) and the RSI is oversold, this could be a good entry point for a long position.
  
• Rationale: The combination of strong support, high trading volume at this price, and the oversold RSI suggests that the price could rebound from this level.
  
• Targets: If the price rebounds, you could target the next resistance levels around $64,471 and $67,616.
  
• Stop-Loss: A stop-loss could be placed just below the $60,000 support, around $59,000, to protect against a downside break.
  

Bearish Scenario (Breakdown Below Support):

• If Bitcoin breaks below the $60,000 level with strong volume, it could quickly fall toward the next support zone around $55,000, as indicated by the lack of volume in between these levels (low-volume area).
  
• Entry Point for Short: If there’s a confirmed breakdown below $60,000, a short position could be taken, targeting $55,000 for a quick profit.
  

Conclusion:
Current Bias: Slight Long based on the oversold RSI and strong support at $60,000. This makes it an attractive entry point for a potential bounce.

Key Levels to Watch:

• Resistance Levels: $64,471, $67,616.
  
• Support Levels: $60,000, $55,000.
  

Risk Management: If entering a long position at $60,000, consider placing a tight stop-loss around $59,000 to minimize downside risk if the support fails.