Hi everyone,
Today I present you my view on a developing fractal on the 4h BTC/USDT chart.
This is a classic and recurrent pattern consisting in 5 main components:
1) Mini blow-off top from the local high with volatility compression before the sell-off, (both cases resamble a double top);
2) Sell-off candle with huge wick, representing sell-side exhaustion;
3) Sellers' profit taking/trapped buyers phase with relatively low volatility and compression area;
4) Last selling phase/long squeeze that paints a deviation below the 4h support;
5) Subsequent multiple taps of the 4h demand zone (wicks printed in a rapid succession).
For the pattern to be actually valid, BTC needs to hold the 56590.28-57694.93 support area and print candles that closes above the lower line of the rectangle and wicks below the latter, successfully tapping the liquidity and confirming bulls support. If this scenario plays out, I think we can see a late shorts squeeze and Bitcoin returning to higher valuations.
As always, happy trading!
Today I present you my view on a developing fractal on the 4h BTC/USDT chart.
This is a classic and recurrent pattern consisting in 5 main components:
1) Mini blow-off top from the local high with volatility compression before the sell-off, (both cases resamble a double top);
2) Sell-off candle with huge wick, representing sell-side exhaustion;
3) Sellers' profit taking/trapped buyers phase with relatively low volatility and compression area;
4) Last selling phase/long squeeze that paints a deviation below the 4h support;
5) Subsequent multiple taps of the 4h demand zone (wicks printed in a rapid succession).
For the pattern to be actually valid, BTC needs to hold the 56590.28-57694.93 support area and print candles that closes above the lower line of the rectangle and wicks below the latter, successfully tapping the liquidity and confirming bulls support. If this scenario plays out, I think we can see a late shorts squeeze and Bitcoin returning to higher valuations.
As always, happy trading!