Here we will provide a technical overview to the BTC chart...
The most recent sell off followed from the Type 2 distribution on the Daily chart; this has held bearish market structure so for this expansion to continue we should see a further LPSY ( Last point of supply) to create a SoW (Sign of weakness).
In structural terms this just means the structure continues bearish and we form a LH which promotes a new LL.
The Key Supply Area has been identified using our supply and demand techniques...
As we have outlined before, in order for Supply to stay in control thus maintaining 'bearish orderflow' we must see a smaller time frame bearish campaign/ decision (distribution) at this key supply area to drive price lower.
Remember every campaign has 2 objectives: Capture liquidity and tap into a relevant S&D... in this case the bearish campaign would sweep lows to tap demand.
Therefore the structural target is at the current LL @ 28K; the secondary target based on a key demand zone sits at 14K.
We like to present both sides of the market so it is important to understand that the highest levels of structure on BTC are still bullish and we have retraced to sufficient prices to promote a new structural high and this would be ATH!
However this would require the current local trading range to have enough momentum to break our key supply area... so rather than a smaller time frame distribution at our key supply area we should see a reaccumulation with the objective to capture the liquidity resting above our structural invalidation point.
This would be a bullish break and therefore confirm this as a bullish campaign.
As much as we would love BTC to fly to ATH and continue its bull run... it is still simply an asset with a printed candlestick chart... we analyse it with the same respect as any other chart using our methodology of S&D and Market Structure.
Some sentimental thoughts as to why we are prepared for this major sell off:
We are in 2021, in 2020 BTC was below 4k is it really that farfetched for a retracement to 14K?...
Greed is dominating the market
Buy Bitcoin is trending on Twitter...
Greater adoption means greater regulation
Dead Cat Bounce...
We respect both sides of the market; with the standard of trading nowadays there are always strong arguments for both directions. We simply want traders to have that same respect for the market and not fall into the MoonBoy Trap.
We hope this overview is insightful, feel free to connect with us if anything is unclear.
The most recent sell off followed from the Type 2 distribution on the Daily chart; this has held bearish market structure so for this expansion to continue we should see a further LPSY ( Last point of supply) to create a SoW (Sign of weakness).
In structural terms this just means the structure continues bearish and we form a LH which promotes a new LL.
The Key Supply Area has been identified using our supply and demand techniques...
As we have outlined before, in order for Supply to stay in control thus maintaining 'bearish orderflow' we must see a smaller time frame bearish campaign/ decision (distribution) at this key supply area to drive price lower.
Remember every campaign has 2 objectives: Capture liquidity and tap into a relevant S&D... in this case the bearish campaign would sweep lows to tap demand.
Therefore the structural target is at the current LL @ 28K; the secondary target based on a key demand zone sits at 14K.
We like to present both sides of the market so it is important to understand that the highest levels of structure on BTC are still bullish and we have retraced to sufficient prices to promote a new structural high and this would be ATH!
However this would require the current local trading range to have enough momentum to break our key supply area... so rather than a smaller time frame distribution at our key supply area we should see a reaccumulation with the objective to capture the liquidity resting above our structural invalidation point.
This would be a bullish break and therefore confirm this as a bullish campaign.
As much as we would love BTC to fly to ATH and continue its bull run... it is still simply an asset with a printed candlestick chart... we analyse it with the same respect as any other chart using our methodology of S&D and Market Structure.
Some sentimental thoughts as to why we are prepared for this major sell off:
We are in 2021, in 2020 BTC was below 4k is it really that farfetched for a retracement to 14K?...
Greed is dominating the market
Buy Bitcoin is trending on Twitter...
Greater adoption means greater regulation
Dead Cat Bounce...
We respect both sides of the market; with the standard of trading nowadays there are always strong arguments for both directions. We simply want traders to have that same respect for the market and not fall into the MoonBoy Trap.
We hope this overview is insightful, feel free to connect with us if anything is unclear.