LIVE$BTC RISK WARNING
I have detected a Buying Climax signal in the H1 timeframe of Bitcoin.
Buying Climax, is a concept that refers to the end or near end of an upward trend. Strong buying pressure with a greedy crowd mentality creates candles with long spreads and high volume. If you are a trader, consider this signal carefully.
Scenario 1: Trend Reversal After a Buying Climax
After a technical rally, if the price declines and retests the previous Buying Climax high while trading volume decreases steadily, the price range narrows, and the price is held around the Climax level, this indicates that the sellers have successfully absorbed the buying pressure. This also suggests that the buyers are gradually becoming exhausted and the sellers are in complete control of the market. Therefore, it can be concluded that the market trend will reverse to the downside.
Scenario 2: Continuation of Uptrend after Buying Climax
This pattern occurs when the price suddenly increases with high trading volume, indicating a frenzy of buying by investors.
If the buying pressure is strong enough to push the price above the Buying Climax price level, the uptrend will continue.
If the buying pressure is not strong enough, the price may retrace and form a reversal pattern.
