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#BTC# Update
BTC bounced off the extension of the last move up today. If this level stays as the bottom, Bitcoin will likely head to the extension on the other side between 111,767 and 112,265.
The Monday range extension is between 111,353 and 111,907. In case BTC recovers, we can say that the first target will be between 111.5k and 112k.
In case it makes a new low, the target will be between 103,992 and 104,546.
In order to break out of this descending structure, BTC first has to flip 108k and then 111k into support.
One more thing to note is that Bitcoin closed the day about $150 above the last low (in terms of daily close) on Oct 17th. If BTC doesn't make a new low, and doesn't close below 106,350, it will eventually go up.
On the very low timeframe, it broke above the descending trend and is currently re-testing it. The critical points to break are yesterday's VWAP at 107.3k and intraday local top at 108.3k. Once it clears 108.3k, it will quickly go back to 110xxx.
In terms of volume, BTC has to hold above last week's VAL at 106,650, and then break above today's VAH at 108k.
The next target will be the zone between 109,5k and 110k (last week's POC).
If BTC flips 113k (last week's VAH) into support, we can resume bull mode.
There are many important things to see on the liquidation heatmaps.
1) Monthly liquidity is swept with today's move.
2) Weekly liquidity is around 112k.
3) 3-day and 24h heatmaps show liquidity above today's local top. (108.5k-108.8k)
4) With the current numbers, the liquidity below today's dip is insignificant.
In short,
Flipping 108k into support is important. Beware of an SFP above 108.3k to grab the liquidity. If BTC drops significantly after sweeping the liquidity, it may go back to range low.
If 108k is flipped into support, BTC will head to 109.5k-110k first and then will target 112k for liquidity. After sweeping the liquidity, if 109.5k holds as support, Bitcoin will want to try 113k.
Above 113k, we can resume a more bullish stance. Until then, we are a bit more cautious.
If BTC loses today's dip, it will first target the extension between 104k-104.5k and in the worst case scenario go down to 101xxx. I do not favor this stance although I can never say that it is impossible.