Possible Flag Formation! Upcoming Perspectives
A week has passed since Bitcoin bounced off the 28,805 USDT.
Over the past month, it has been noticed that TFUEL is weakly dependent on Bitcoin. However, the fall of Bitcoin to the next support level, combined with the TFUEL downtrend, resulted in a strong drawdown in its price.
Today, supply and demand of TFUEL have been slightly balanced. Presumably, this is due to the fact that stop-loss orders were activated at the level of about 0.36 USDT and a large amount of TFUEL was sold. Then the TFUEL price touched the possible strong support level.
I see two possible development scenarios.
The first scenario (dashed line). TFUEL will bounce off the 0.35 USDT level and head above the 0.70 USDT level, forming a flag. The possibility of this scenario will increase in the case of a stable, durable Bitcoin uptrend, as I described in my last BTCUSDT idea.
The second scenario (dotted lines). TFUEL will drop to 0.25 USDT and then head to the level above 0.70 USDT, also forming a flag.
Both scenarios are highly possible to happen, especially given the recent launch of Theta MainNet 3.0 and the good Theta Network ecosystem. The main threat to the scenarios is the sharp drop in Bitcoin. There is a possibility that a large volume of sell orders will not have time to dissipate in the case of the continuation of the Bitcoin downtrend. However, don't forget the positive impact of good news!
The idea will be invalidated in the case of a strong deviation from the intended paths or in the event of a price drop below 0.25 USDT.
What do you think about that? Any opinion is appreciated. Comments give me the opportunity to look at situations from different angles.
Not investment advice.
Over the past month, it has been noticed that TFUEL is weakly dependent on Bitcoin. However, the fall of Bitcoin to the next support level, combined with the TFUEL downtrend, resulted in a strong drawdown in its price.
Today, supply and demand of TFUEL have been slightly balanced. Presumably, this is due to the fact that stop-loss orders were activated at the level of about 0.36 USDT and a large amount of TFUEL was sold. Then the TFUEL price touched the possible strong support level.
I see two possible development scenarios.
The first scenario (dashed line). TFUEL will bounce off the 0.35 USDT level and head above the 0.70 USDT level, forming a flag. The possibility of this scenario will increase in the case of a stable, durable Bitcoin uptrend, as I described in my last BTCUSDT idea.
The second scenario (dotted lines). TFUEL will drop to 0.25 USDT and then head to the level above 0.70 USDT, also forming a flag.
Both scenarios are highly possible to happen, especially given the recent launch of Theta MainNet 3.0 and the good Theta Network ecosystem. The main threat to the scenarios is the sharp drop in Bitcoin. There is a possibility that a large volume of sell orders will not have time to dissipate in the case of the continuation of the Bitcoin downtrend. However, don't forget the positive impact of good news!
The idea will be invalidated in the case of a strong deviation from the intended paths or in the event of a price drop below 0.25 USDT.
What do you think about that? Any opinion is appreciated. Comments give me the opportunity to look at situations from different angles.
Not investment advice.
Comment:
Despite the slight delay, it looks like the uptrend is starting.
