I offer one simple explanation: the . This pattern represents the re-testing of a critical level. (In this case, we'd be looking at a re-test of 375-400/2300-2400.)
The blue horizontal lines show my calculated price reversal zone (aka resistance levels). This *appears* to be a textbook case: (1) the retracement/projection levels indicate that this is the "ideal bat" variant, (2) all points in the PRZ are tested in one swing, and then not really tested again.
The is consistent with the that sort of appears on some BTCUSD charts.
(I'm not super familiar with the . I don't trust this explanation and I don't trust this whole formation. Take this post with salt.)