NOTE: In a recently published post I warned about the "Trap for Solana Buyers", but it feels like that post needs some more explanation so here's an improved version.
Let's analyze the situation first!
â Bitcoin ATH & Halving: $BTC just topped before halving and since then it's consolidating, hence the rest of the market follows it as well for some time.
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Vertical Growth: $SOL grew vertically in the past few months with almost no consolidation.
What does that indicate? A correction, right?
Look at this picture:
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Weekly vs Daily View: A ton of people use 'Daily Timeframe' for their go-to analysis method. But, sometimes it could be a problem when lower timeframe doesn't align with the higher timeframe. That's the case here.
Let's draw some structures(with a Daily timeframe trading approach):
Daily seems Bullish, buyer would be expecting something like this:
But,
THIS IS WHERE EVERYONE IS BEING TRAPPED!
What's the Weekly View?
Let's See:
3 Key reasons to expect a fail at Red Zone:
â Overall market is red until we really see some momentum regarding #AltSeaason .
â
Solana could 'Fake A Break' upwards and continue bearish move because $SOL recently broke the bullish trend line & it's retesting in bearish mode.
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Red zone has been already tested twice, and sellers are continuously pushing the price down.
â Recent push(after 2nd retest) was very weak and small, now the price is back at the same level for the 3rd time, "Buyers are losing strength".
Here's a visual presentation on Daily Timeframe:
Conclusion:
Using this approach, price is still expected to drop. Which could be either of the 3 ways:
1- Key level(Red zone) break, which didn't happen and some pending buy orders got absorbed here.
2- Direct rejection from the broken trend line(bearish retest) level, which didn't happen.
3- "Fake A Break" around/at the trend line retest level, show FAKE bullish momentum(to add more confusion) and go down when everything looks bullish, hence trapping all the buyers.
NOTE: That's all from the above perspective, if none of this happens within/around next 72hrs, then we're wrong and we should learn from the situation.
Following now could help you understand the reality in future as well...!