As BTC breaks out and starts to rise traders tend to feel its rising cycle is never going to end and build confidence based on hysteria. This misjudgment provides a blind faith in investors as the chart takes exponential curve based structure. In the state of rising parabolic arc, the price continues to rise without a pause and/or with series of upside gaps.
In its last stage, parabolic arcs move vertically as panic buying (climactic buy) in an absence of sellers on some unfounded expectations/news/events. Most of this climactic buy is driven by momentum and amateur traders, in fear of being left behind. Finally, the reality sets in buyers start taking profits abd this creates Panic Selling. The prices reverse dramatically with large ranges as the initial buyers take profits. The traders who bought at the top also start to sell on panic.
With the newly established for the week, I am noticing nice confluence formations
>Daily R1 and Meso R2 correlating with the May 18 high of 10k, hence clearly established resistance that would most definitely show its significance in the future
>Meso R1 sitting quietly at the upper of the
>Meso S1 sitting at prior resistance, also Monthly/weekly
>Meso S2 and Daily P correlating with the big , established since end of March 19
So well-defined lvls that would show their significance, no matter where Price is headed from now.
In my eyes this is a major inflection point for the crypto in general. Clearly defined top formations are in place nearly across the board. If we can overcome this and break higher I see another important leg up, again clear levels are established
Keep in mind that the structure on the Meso is still intact as we are maintain HH HL.
The generated liq pool that we had last week (SFP, marked with x on the chart) showed its significance and a decent reaction occurred.
On Meso not a single candle closed above 8825$ and that price level showed its significance once the reaction occurred as it was tested again, yesterday>>that's the kind of confluence that I always seek to gauge an entry. That lvl also coincides with the wedge's mid-line that showed significance in the past. Also heavy spot activity, during the last 24h
We are also starting to see the cascading momentum phenomenon starting to play out