I will not go into yesterday's interest rate cut and macroeconomic issues because I am trying to progress this place only with a crypto focus. Those who are interested in general financial issues, macroeconomics, stock markets, commodities, etc. can take a look at my X account that I run with the same user account.
First, let's summarize what happened and then look at the price action side a little.
$BTC hit our target that I shared before and made #ATH , and then yesterday's developments made a wick under the trend and like in the previous examples, the trend below liquidation was swept and the price held on to the trend again.
- Is the movement we are seeing now positive?
Yes
- So can the decline come again?
That is also yes
- Why and how?
Let's see...
When we look at the chart as a line chart (without wicks), we see that the trend is still working well and there seems no need to calibrate.
But I am trying to progress with the basics of price action, liquidation and smart money concepts rather than trend lines. I think you cannot have a better guide than these when you go down to lower time frames. I look at general chart formations and trend lines as a leading indicator / forecasting assistant in the middle and high time frames and they are not my first priority.
The grey box is our previous bullish swing and this is our area of interest.
The current movement is the correction movement of the previous bullish swing (for now). If you look at the graphs I shared before, it turned exactly from the area I gave as support and this level was a liquidation level, and it swept it.
What should we follow?
👉Now we have the supply area that I gave with the red box in front of us. I expect the price to rise to here. The reaction it will give here will show the continuation of the movement. If it can break this area, it will probably make an #ATH like the targets I shared before.
If it cannot break here, it will indicate that the correction movement in our area of interest is not over yet and we will see the continuation of the decline.
There are two scenarios here:
👉1) If the price comes back to the wick levels in this last decline and makes a quick return after the wick as it is now, we may not wait for further decreases because the remaining liquidation will also be cleared and we will have received the return confirmation with the double bottom formation.
👉2) In this case, if there are not enough buyers left since the liquidation at the old wicked level has been cleared, it will probably go down to the liquidation level below and the order block. If the rise continues from here, we will be following the reversal candle formations.
When we see permanent candle closings under the green box below, then we start to evaluate that the bullish character has changed on the daily time frame (CHoCH and MSB) and there may be deeper declines.