The key question we're examining is whether Bitcoin will clear the order block from the second quarter of 2022. Currently, two scenarios are being considered:
Scenario 1: Bitcoin may sweep up the second quarter before descending further.
In this case, the price action is expected to move upward in the short term, potentially encountering resistance at the confluence area around $26.9K. The reasons supporting this upward movement are based on the historical support level from 2021 and the failure to clear the order block of 2022.
Scenario 2: Alternatively, Bitcoin may face a downward trendline originating from March 2021. The order blocks from May and June 2022 could act as a trap set by institutional players (inducement). If this scenario plays out, Bitcoin might position itself at the confluence area around $26.9K.
It's important to note that for Bitcoin to climb further, it would need to cross both the 200 EMA and 800 EMA, in addition to the presence of an upward trendline. The fulfillment of these technical criteria may lead to an upward move.
However, before any significant climb, the Fill-The-Value Gap (FVG) must be filled, suggesting that certain price levels need to be retested before a more substantial upward trend could potentially take place.
In conclusion, as a professional trader, the focus is on monitoring the confluence area at $26.9K, observing the trendlines, EMAs, and the fulfillment of the FVG. These technical factors will play a crucial role in determining Bitcoin's potential direction in the second quarter of 2022.
Scenario 1: Bitcoin may sweep up the second quarter before descending further.
In this case, the price action is expected to move upward in the short term, potentially encountering resistance at the confluence area around $26.9K. The reasons supporting this upward movement are based on the historical support level from 2021 and the failure to clear the order block of 2022.
Scenario 2: Alternatively, Bitcoin may face a downward trendline originating from March 2021. The order blocks from May and June 2022 could act as a trap set by institutional players (inducement). If this scenario plays out, Bitcoin might position itself at the confluence area around $26.9K.
It's important to note that for Bitcoin to climb further, it would need to cross both the 200 EMA and 800 EMA, in addition to the presence of an upward trendline. The fulfillment of these technical criteria may lead to an upward move.
However, before any significant climb, the Fill-The-Value Gap (FVG) must be filled, suggesting that certain price levels need to be retested before a more substantial upward trend could potentially take place.
In conclusion, as a professional trader, the focus is on monitoring the confluence area at $26.9K, observing the trendlines, EMAs, and the fulfillment of the FVG. These technical factors will play a crucial role in determining Bitcoin's potential direction in the second quarter of 2022.