Quick update on BTC price action: I spotted similarities between the pa since the $25k crash, and the pa of late 2021 when BTC fell off from ath. After the crash, the selling pressure was temporarily exhausted, and the price action started to form a falling wedge, followed by an upward breakout, which ended up failing and broke down again. Now, let's not forget that the context today is slightly different from back then, as we've already come a long way down from ath. However this time the type of price action, as I predicted in a previous post, is not so different as we are completing yet another (re-)distribution cycle, which lets us more safely assume that investors are likely to behave in a similar way !
Technically speaking, last winter the fake breakout stopped right at the Kijun-sen before shying away from a big red Kumo cloud, which is exactly what's happening now too. I also felt like adding a momentum indicator to get an idea of whether we could indeed be about to dive down again: as you can see, the rsi is falling from the oversold area, so we're likely to start going down hard now. But again, the Stoch can always surprise us and swing back up into oversold. But seeing how the Stoch behaves during a bear market in similar situations as right now, we're still likely to go down very soon.
Anyway, I posted about that because I found it funny how the pa is kind of repeating. Curious to see how it'll go! By the way, hopefully you started thinking more carefully after reading my last post and din't get rekt on a long. I'm starting to think I can look into the future. Lol, jk
LPSY= Last point of supply
Technically speaking, last winter the fake breakout stopped right at the Kijun-sen before shying away from a big red Kumo cloud, which is exactly what's happening now too. I also felt like adding a momentum indicator to get an idea of whether we could indeed be about to dive down again: as you can see, the rsi is falling from the oversold area, so we're likely to start going down hard now. But again, the Stoch can always surprise us and swing back up into oversold. But seeing how the Stoch behaves during a bear market in similar situations as right now, we're still likely to go down very soon.
Anyway, I posted about that because I found it funny how the pa is kind of repeating. Curious to see how it'll go! By the way, hopefully you started thinking more carefully after reading my last post and din't get rekt on a long. I'm starting to think I can look into the future. Lol, jk
LPSY= Last point of supply
Comment:
By the way, here is a bigger picture of the Fib levels based on which I drew that small demand zone (between previous $25k low, and .618 Fib)
