1. Historical Example (Left Side of the Chart - around 2021-2022):
"NFT" Label at the Top: The trader has labeled a peak around late 2021 with "NFT." This likely signifies a period of market euphoria or a local top, possibly correlated with a peak in NFT hype.
Failure to Make New Highs / Bearish Structure: After this peak, the price action shows lower highs and lower lows, indicating a downtrend.
Break of Support: The price broke down from a previous support area.
Targeting Previous Demand: The arrow points down towards a shaded maroon box. This box represents a significant area of previous demand/support FVG (roughly $15,000 - $30,000 in this hypothetical chart) where buyers previously stepped in, or where price consolidated before a major move up. The expectation was that price would revisit this significant prior zone.
2. Current/Projected Scenario (Right Side of the Chart - 2025 onwards):
"NFT" Label at the Current Top: Again, an "NFT" label is placed near the recent high (around
105,000 − 105,000− 110,000 in this chart). This suggests the market is again at a euphoric peak or a significant local top.
Potential Double Top / Rejection: The price has made a significant high and seems to be struggling to push further, showing signs of rejection (as indicated by the recent candles with upper wicks and a potential downturn). This could be forming a double top or a lower high relative to the absolute peak.
Two-Stage Short Target:
First Target (Short Arrow): The shorter arrow points down to a horizontal line around the $75,000 - $80,000 level. This is likely a near-term support level, perhaps a previous swing low or an area of recent consolidation. A break below the current highs might lead to a test of this level.
Second, Larger Target (Long Arrow): The longer arrow points down to a much larger shaded maroon box. This box (roughly $30,000 - $40,000 in this chart) represents a significant, longer-term demand/support zone. This zone was a major area of consolidation or previous resistance that turned into support before the most recent leg up to the $100k+ levels.
Rationale for the Deeper Target: If the near-term support (around 75k−75k−80k) fails to hold, the trader expects a more significant correction.
"NFT" Label at the Top: The trader has labeled a peak around late 2021 with "NFT." This likely signifies a period of market euphoria or a local top, possibly correlated with a peak in NFT hype.
Failure to Make New Highs / Bearish Structure: After this peak, the price action shows lower highs and lower lows, indicating a downtrend.
Break of Support: The price broke down from a previous support area.
Targeting Previous Demand: The arrow points down towards a shaded maroon box. This box represents a significant area of previous demand/support FVG (roughly $15,000 - $30,000 in this hypothetical chart) where buyers previously stepped in, or where price consolidated before a major move up. The expectation was that price would revisit this significant prior zone.
2. Current/Projected Scenario (Right Side of the Chart - 2025 onwards):
"NFT" Label at the Current Top: Again, an "NFT" label is placed near the recent high (around
105,000 − 105,000− 110,000 in this chart). This suggests the market is again at a euphoric peak or a significant local top.
Potential Double Top / Rejection: The price has made a significant high and seems to be struggling to push further, showing signs of rejection (as indicated by the recent candles with upper wicks and a potential downturn). This could be forming a double top or a lower high relative to the absolute peak.
Two-Stage Short Target:
First Target (Short Arrow): The shorter arrow points down to a horizontal line around the $75,000 - $80,000 level. This is likely a near-term support level, perhaps a previous swing low or an area of recent consolidation. A break below the current highs might lead to a test of this level.
Second, Larger Target (Long Arrow): The longer arrow points down to a much larger shaded maroon box. This box (roughly $30,000 - $40,000 in this chart) represents a significant, longer-term demand/support zone. This zone was a major area of consolidation or previous resistance that turned into support before the most recent leg up to the $100k+ levels.
Rationale for the Deeper Target: If the near-term support (around 75k−75k−80k) fails to hold, the trader expects a more significant correction.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.