- The new price action trigger that is forming for Bitcoin D1 is the Inside bar pattern that is being created. The D1 bar of Friday is completely covering the D1 bars of Saturday and Sunday, creating a state of price compression and accumulation. According to the theory of technical analysis, the accumulation state will lead to an explosive volatility explosion later.
- In the context that Bitcoin D1 is approaching the previous old peak area, the creation of a state of price compression and accumulation suggests that the price is likely to have a breakout and break up. Because if this area still has strong resistance, the price would have been pushed down quickly and could not have accumulated sideways.
- The decline in Volume in the current accumulation phase also contributes to confirming the possibility that this is an accumulation zone.