1. Support May Not Hold
The analysis assumes that the price will bounce from the support area, but what if selling pressure is strong?
Instead of a reversal, the price could break below support and continue down. A breakdown below 0.006580 would invalidate the bullish outlook.
2. False Support Bounce Possible
The price could initially react at support, giving the illusion of a bullish reversal, but fail to gain momentum and break lower. This could trap early buyers.
3. Liquidity Grab & Fakeout Scenario
The market makers could push the price below the support zone, trigger stop-losses of long positions, and then reverse higher.
A deeper liquidity grab could occur before a real move up.
4. Resistance May Strengthen
Even if price bounces, the resistance zone could become stronger, leading to a sideways range rather than a clear bullish breakout.
Traders should watch for signs of exhaustion before assuming a continuation upward.
Alternative Outlook
If price breaks below 0.006580, the downtrend could extend further.
A bounce from support should be confirmed with strong bullish candles before assuming a rally.
The analysis assumes that the price will bounce from the support area, but what if selling pressure is strong?
Instead of a reversal, the price could break below support and continue down. A breakdown below 0.006580 would invalidate the bullish outlook.
2. False Support Bounce Possible
The price could initially react at support, giving the illusion of a bullish reversal, but fail to gain momentum and break lower. This could trap early buyers.
3. Liquidity Grab & Fakeout Scenario
The market makers could push the price below the support zone, trigger stop-losses of long positions, and then reverse higher.
A deeper liquidity grab could occur before a real move up.
4. Resistance May Strengthen
Even if price bounces, the resistance zone could become stronger, leading to a sideways range rather than a clear bullish breakout.
Traders should watch for signs of exhaustion before assuming a continuation upward.
Alternative Outlook
If price breaks below 0.006580, the downtrend could extend further.
A bounce from support should be confirmed with strong bullish candles before assuming a rally.
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.