We're currently well above the VAH (blue dotted line). BTC has failed multiple times to break through the top of the horizontal channel. These are signs of weakness.
What's more, on the above image, you can see a wick above the channel on high volume, which means a lot of longs have opened at the top. Right after, we see a rejection on high volume. This means all the longs that have just opened are now trapped. If price reverts to their entry level, they are likely to close their long, adding selling pressure. That is IF they get that chance... The other scenario is that price does not revert to their entry level, but instead moves down further. In that case they'll get liquidated, also adding massive selling pressure.
I'm targeting lower levels. Always use multiple TPs and move SL to entry once TP1 is hit.
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TP1 hit 💰
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A upward sloping triangle formed, which seems to be breaking down. The lower support line has been retested.
Good analysis. One thing I would like to point out is probably can set a partial take profit in 23400 area, as the price seems to be ranging there.
Otherwise, I overall agree with you for the bearish scenario. Thanks!
madmax1000
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@TheCryptoLegend, Agree, it's also the midline of the horizontal channel, plus the POC of the range (red line) is closeby. Good area to place another TP indeed.
kumaranthonio18
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It’s a flag pattern
madmax1000
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@kumaranthonio18, could be, but IMO it doesn't matter much which pattern it is. Key is to look for areas of liquidity where lots of traders get trapped, and then to take the opposite side. So far this trade is ageing well.