Going through likely scenarios with this BTC correction phase
I believe we are seeing the reversal here. I have multiple divergences on both RSI and Delta Volume, so I am really liking the reversal right here (as stated in previous ideas, potential still exists for possible push slightly higher, but I like our chances right here).
So what we will be looking for is a test and retest of the upper range before we have good potential for a spring below the trading range. That tends to suck in long positions because we will likely see an impulsive move up. So just be ready for a lot of impulsive moves up, followed by a slow eventual drain lower. This is how we will know that we are in a downtrend, because moves up will be quick, moves down will drag and drip slowly until we have sufficiently retested the top for sellers to come in recognizing we are not moving higher... I would guess to say that tonight into Monday morning is when we should see more of an institutional inkling of much broader swift selling in this range and the possibility exists that we will start establishing a new accumulation zone BELOW the original distribution model we entered into the beginning of the month.
So for now, this is the prediction model I've got. Of course as price moves and confirms, things could change.
So what we will be looking for is a test and retest of the upper range before we have good potential for a spring below the trading range. That tends to suck in long positions because we will likely see an impulsive move up. So just be ready for a lot of impulsive moves up, followed by a slow eventual drain lower. This is how we will know that we are in a downtrend, because moves up will be quick, moves down will drag and drip slowly until we have sufficiently retested the top for sellers to come in recognizing we are not moving higher... I would guess to say that tonight into Monday morning is when we should see more of an institutional inkling of much broader swift selling in this range and the possibility exists that we will start establishing a new accumulation zone BELOW the original distribution model we entered into the beginning of the month.
So for now, this is the prediction model I've got. Of course as price moves and confirms, things could change.