Market Overview
The chart showcases a period of consolidation with notable price action movements. Key concepts like BOS (Break of Structure), CHoCH (Change of Character), EQH (Equal Highs), and other significant areas of supply and demand are highlighted. The price appears to be trading in a range, and there are clear zones where liquidity is resting and potential reversals could occur.
Key Observations
Break of Structure (BOS):
Several BOS instances are marked in red, indicating bearish breaks. These signify moments where the price created lower lows, continuing a bearish structure.
Conversely, green BOS levels show bullish intentions when the price broke above a prior resistance level.
Change of Character (CHoCH):
CHoCH zones (green for bullish and red for bearish) indicate shifts in market sentiment. A CHoCH can precede a reversal or a temporary pause in trend momentum.
Supply and Demand Zones:
The strong high above the $1.20 zone represents a key resistance level and potential supply zone. This is where sellers could step in if the price revisits.
The weak low near $1.0287 marks a demand zone where buyers might defend aggressively.
Moving Averages:
The chart includes a green moving average, likely serving as dynamic support or resistance. Price movements around this line show rejection or acceptance, reinforcing its importance as a trend indicator.
Liquidity Levels:
Equal Highs (EQH): Resting above the $1.15-$1.16 area, EQHs suggest liquidity pockets where stop-loss orders could trigger further bullish momentum.
Equal Lows (EQL): Unmarked but implied below the weak low zone, these areas could attract price sweeps for liquidity grabs before reversing upward.
Analysis of Current Price Action
The price is currently trading near the mid-range, hovering around $1.0534. A slight bullish bounce is evident, possibly testing short-term resistance at $1.0540 or higher at $1.0780.
Bearish bias persists with BOS and CHoCH indicating lower highs and lower lows. However, the weak low near $1.0287 suggests the potential for a liquidity sweep and reversal.
Key Levels to Watch
Resistance:
$1.0540: Immediate resistance. Price rejection here could lead to further downside.
$1.0780: A significant area of supply where sellers might enter aggressively.
$1.20: Strong resistance zone; a break above could indicate a larger bullish trend.
Support:
$1.0287: Weak low demand zone. This level must hold to prevent deeper bearish continuation.
Below $1.00: Psychological round number and likely strong support if breached.
Potential Scenarios
Bullish Scenario:
A break above $1.0540 with sustained momentum could lead to a retest of $1.0780.
Clearing the EQHs at $1.15 could trigger a liquidity sweep, pushing the price toward the $1.20 strong high zone.
Bearish Scenario:
Rejection at $1.0540 or $1.0780 could push the price back toward the $1.0287 weak low.
If the weak low breaks, expect a continuation to lower levels, targeting sub-$1.00 zones.
Range-Bound Scenario:
If neither resistance nor support breaks, expect further consolidation between $1.0287 and $1.0780. This could create additional liquidity pockets for a future breakout.
Conclusion
The USUAL/USDT pair is at a critical juncture, trading between key supply and demand zones. While the overall bias leans bearish due to BOS patterns, the weak low suggests a possible short-term reversal or liquidity grab. Traders should watch for price action around $1.0540 and $1.0287 for clues on the next major move. Breakouts from these levels could set the stage for significant price expansion, either to the upside or downside.
Risk management is crucial, especially in such consolidative and liquidity-driven conditions. Always combine technical analysis with broader market sentiment and news for better decision-making.$USUAL
