Bitcoin (BTC) has established a daily higher high (HH). To confirm a swing high, we need to wait for another daily candle, specifically looking for tomorrow's candle to close below today's.
Following this, we should anticipate a correction towards the discount zone.
Here are two potential scenarios:
A. If BTC forms a lower high (LH) after the retracement, it indicates that the change of character (CHOCH) in the current upward movement is invalid. Consequently, BTC is likely to decline further and continue its downward trend.
B. If BTC does not respect the order block (OB) expected to form in the upcoming days during the retracement and fails to create a LH in the next upward leg, it may continue to rise.
Given that the weekly BTC chart has not retraced to the previous high or reached the discount zone, the likelihood of scenario B occurring increases.
Another important factor is volume, which often precedes price movements. The recent upward leg exhibited lower volume compared to the high volume observed during the downtrend, suggesting that buyers may be losing momentum.
On the one-hour chart, the recent swing low has been broken, forming a CHOCH. This potentially signals the start of a downward pullback.
Enjoy and good luck (GL)!
Following this, we should anticipate a correction towards the discount zone.
Here are two potential scenarios:
A. If BTC forms a lower high (LH) after the retracement, it indicates that the change of character (CHOCH) in the current upward movement is invalid. Consequently, BTC is likely to decline further and continue its downward trend.
B. If BTC does not respect the order block (OB) expected to form in the upcoming days during the retracement and fails to create a LH in the next upward leg, it may continue to rise.
Given that the weekly BTC chart has not retraced to the previous high or reached the discount zone, the likelihood of scenario B occurring increases.
Another important factor is volume, which often precedes price movements. The recent upward leg exhibited lower volume compared to the high volume observed during the downtrend, suggesting that buyers may be losing momentum.
On the one-hour chart, the recent swing low has been broken, forming a CHOCH. This potentially signals the start of a downward pullback.
Enjoy and good luck (GL)!
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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.