BTC: likely fall towards bottom of 22k before we test breakout
NOTE: The terms I use in this chart will come from Wyckoff accumulation and/or distribution patterns. ALSO note that the price action I'm showing is approximate, DO NOT go buy the exact price of where the arrows are drawn. They are drawn strictly to show you price action and not specific prices I think will be hit exactly.
In the descending channel we are currently in, I suspect that we will be headed towards the bottom end of 22k.
The consolidation pattern that will emerge from breaking below the bottom of the channel will tell us if we break above the descending channel, or fall hard to the next major support.
The chart tells you how to navigate what will happen.
For now, a short position is still profitable, BUT BE CAREFUL HERE! Things can turn around extremely quickly!
TYPICALLY on a downtrend, even if we confirm above the previous high after we fall, a SPRING pattern is highly likely!
Measuring the volume on breakouts is the KEY!!!
In the descending channel we are currently in, I suspect that we will be headed towards the bottom end of 22k.
The consolidation pattern that will emerge from breaking below the bottom of the channel will tell us if we break above the descending channel, or fall hard to the next major support.
The chart tells you how to navigate what will happen.
For now, a short position is still profitable, BUT BE CAREFUL HERE! Things can turn around extremely quickly!
TYPICALLY on a downtrend, even if we confirm above the previous high after we fall, a SPRING pattern is highly likely!
Measuring the volume on breakouts is the KEY!!!
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This is a textbook example of what can happen on distribution: when volume does NOT confirm higher on the breakout!
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See what happens immediately afterwards?..
***ALWAYS*** USE THE ONE MINUTE CHART ON CONFIRMING VOLUME: BECAUSE THE CANDLE THAT BREAKS IT CAN BE CONSOLIDATED IN PREVIOUS LOWER CANDLES ON SHORT TIMEFRAMES THAT MAKE THE CONFIRMATION VOLUME LOOK VALID ON HIGHER TIMEFRAMES!