Important: We are not supporters of drawing lots of and trying to tie the current correction to them. All that may matter to traders now is the area from where the past upward pullbacks started. And we must see a retest of this zone, which would confirm our conclusions. Right now, that zone is $34.8k-$35.5k.
Why is it there? This zone stopped the correction last week, and there are all reasons to believe that a sufficient number of buy orders accumulated there to prevent the price from going lower. And now I will prove that levels are really important in the current situation. The highest local 1D bar close is the May 20th, close at $40.526. I would call the positive scenario if we see the 1D bar close above that level. So a few days ago, when everyone thought that the 18% growth in price is positive, the price of BTC was only $10 down from that level! That’s why the rapid growth of the price in a short time doesn’t make the situation positive for the bulls. We didn’t see the most important thing – the price-fixing at that level.
Possible scenarios. It’s a good thing if we see today’s 1d close above the marked zone, but what if the 1D close below? Then we need to wait at least one more day. The false breakout of this zone can save the situation. (indicated on the chart). In case this scenario does not work out, then, unfortunately, we will see the consolidation continue.