Shortly after falling from its test of the low $4,000s, bitcoin managed to find support in the mid $3,500s. This has proven to be a relevant level over the last few months, and finding support here would be a sign of relatively strong demand:

Figure 1: BTC-USD, Daily Candles, Local Support

The high candle spread rejection following our test of the low $4,000s was an indication that we had strong levels of supply left in the market, but for the time being we are holding support. Looking into lower time frame charts, we see that we are currently riding on top of both the symmetrical triangle shown above and the prior trading range (TR) sitting just below us:

Figure_2 (12).png

Figure 2: BTC-USD, 4-Hour Charts, Retest of Trading Range

Often, we see extreme wicks that drop into prior trading ranges as a method to generate liquidity for large capital…

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Source: https://thebitcoinnews.com/bitcoin-price-analysis-keep-an-eye-out-for-a-close-above-the-current-high/