Harmonic Patterns
Instability, BTC’s Downtrend & ETH at a Critical Level!The crypto market has been highly unstable over the past few weeks, largely due to the Federal Reserve’s stance on monetary policy. With no signs of quantitative easing, the market has reacted negatively, triggering a broader downtrend—especially for Bitcoin.
On Sunday, we witnessed a dramatic price surge, with BTC skyrocketing from $84K to $94K, only to see all gains wiped out within a single day. This price action is eerily similar to the 2019 “China Pump,” when BTC spiked from $7K to $10K before retracing completely within days. Such volatility suggests that sentiment remains fragile, and sellers continue to dominate.
Ethereum (ETH): A Sign of Weakness?
ETH isn’t looking strong either. It’s currently hovering around the $2,100 level, sitting right on a critical support zone. As I’ve highlighted in my chart, ETH has already broken below its support trendline—a bearish signal that suggests further downside risk. If this key support level fails to hold, we could see ETH drop to around $1,500 in the coming weeks.
Implications for the Altcoin Market
If ETH loses its support zone, it could trigger a major sell-off across the entire altcoin market. Historically, ETH acts as a leading indicator for altcoins, and a breakdown here could push Bitcoin dominance up to 66%-70% before altcoins find a bottom. This means we could be in for another phase of altcoin underperformance while BTC consolidates.
Final Thoughts: Watch ETH Closely!
Given the current market structure, my suggestion is to monitor ETH closely at these levels. If it fails to hold, expect a significant downward move in the altcoins market. Bitcoin dominance rising would confirm that altcoins are in for a rough period ahead. Stay cautious and trade accordingly!
Stock Market Struggles Add to Bearish Sentiment
It’s not just crypto feeling the pressure—the stock market isn’t looking good either. Both the S&P 500 and NVIDIA are down significantly today, adding to the overall negative sentiment. When traditional markets struggle, risk assets like crypto tend to follow suit.
That said, I’m expecting one final leg down before we see a shift. Once the Federal Reserve signals quantitative easing (QE), we can start anticipating a return to bullish momentum across both stocks and crypto. Until then, caution is key!
GBPUSD BEARISH FOR 80PIPSTechnical Indicators:
A break below a key support level.
Bearish candlestick patterns such as shooting stars or engulfing candles.
A negative crossover in moving averages (e.g., 50-period crossing below the 200-period).
RSI (Relative Strength Index) showing overbought conditions, signaling a potential reversal.
Fundamental Factors:
Economic data releases that are negative for the UK economy, such as poor GDP growth, disappointing employment reports, or a lower-than-expected inflation reading.
Interest rate decisions or statements from the Bank of England that are dovish.
Stronger-than-expected US data, such as better-than-expected non-farm payrolls, inflation, or GDP figures, which could support the US dollar.
Market Sentiment:
If broader risk sentiment turns negative, investors may flock to the US dollar as a safe-haven asset, putting further downward pressure on GBP/USD.
ADAUSD May Rise with a Cup Formation.When the ADAUSD weekly chart is examined; It is observed that the price movements continue with the formation of a cup above the support zone. As long as the crypto's 0.5104 level is not broken down, it is evaluated that the price movements above the 0.7433 level can exceed the 1.4653 level and target the 2.2398 level.
BITCOIN 2025 - A MODERATE SCENARIOBitcoin’s price trajectory hinges on critical technical levels. Should Bitcoin fall below the key support zones—referred to here as the 'red lines' and t he bold black line —it risks entering a bear market, potentially signaling the end of the current bull cycle. These levels are pivotal for sustaining the parabolic bull market’s final leg. Following an initial decline from current levels, Bitcoin is projected to drop to approximately $70K, where it may consolidate for a couple of months. For the best-case scenario to unfold, Bitcoin must hold above the critical $70-77K threshold and execute a sharp V-shaped recovery. From there, a robust rally could propel it beyond $100K around August, culminating in the cycle’s peak in September at its highest point. While this outcome appears unlikely in the short term, it remains the most favorable projection, contingent on Bitcoin maintaining strength above the $70K line. Failure to do so could prematurely terminate the bull cycle.
How should we analyze ETHUSDT? I have written about the reasons Ethereum has been the most talked-about asset during this downturn.
↪ Each time it showed a decline, the drop was sharp and rapid, consistently forming new lows. As a result, it has significantly lost trust among retail investors who were primarily focused on buying.
Here is the daily chart of Ethereum.
The overall structure and range are formed using two supply zones as key levels along with a single range.
I am currently using two key levels as my primary reference:
1. The support zone that held during the decline in early February.
2. The resistance zone that formed when the previous low was broken.
✔ Despite the new low being established, I have set the range as shown above because it is still too early to confirm a complete breakdown of the lower range.
✔ As shown in the chart above, we have yet to see a full-body candle close below the lower range. Additionally, the key level at the bottom continues to provide support.
If we do see a decisive full-body close below the lower range and the key level no longer holds as support, we can conclude that the liquidity sweep at the lower range has failed to remove sufficient liquidity.
A Range Sweep typically occurs when there is a well-defined range with clear highs and lows. It refers to a scenario where price temporarily breaks out (or breaks down) beyond this range but closes back inside, leaving a wick.
This movement goes by different names, such as Range Sweep, Stop Hunt, and Fake Out, but they all serve a distinct purpose.
The Role of Smart Money in Liquidity Sweeps
Market-controlling entities, often referred to as Smart Money, tend to move in the opposite direction of retail traders. Their primary objective is to eliminate as many retail positions (liquidity) as possible before triggering a sharp price reversal.
Retail traders generally follow simple trading patterns:
• They tend to chase price moves, entering long positions as the price rises and short positions as it falls.
• They often place stop-loss orders at the most recent swing high (for shorts) or swing low (for longs).
Smart Money exploits this predictable behavior by targeting these stop-loss orders to clear liquidity and then reversing the price direction.
Key Liquidity Concepts
• BSL (Buy-Side Liquidity): Liquidity from short positions’ stop-loss orders resting above key highs. If price touches these levels, a reversal may occur.
• SSL (Sell-Side Liquidity): Liquidity from long positions’ stop-loss orders resting below key lows. If price touches these levels, a reversal may occur.
Liquidity Sweep in Action
Liquidity sweeps follow this mechanism:
1. Price breaches a key level (either a high or a low).
2. Stop-loss orders trigger, increasing liquidity.
3. Smart Money absorbs liquidity and reverses price direction.
Understanding this concept and identifying liquidity sweeps in real-time can significantly enhance your market analysis and trading strategies. Keep an eye on these setups, as they can provide high-probability trade opportunities.
The explanation about liquidity sweeps became a bit lengthy in the middle.
Ultimately, I still see Ethereum’s current price action near the daily low as part of an ongoing liquidity removal process. If it breaks above the trendline resistance and the key level within the internal range supply zone, signaling a trend shift, we could target a move up to the range high of $4,100.
▩ Key Takeaways from This Perspective: The Method and Purpose of Liquidity Sweeps
To successfully trade the movements that follow liquidity sweeps, it’s crucial to understand that positions should not be taken during the liquidity removal process itself.
If liquidity is being swept on a higher time frame (HTF), the top-down analysis approach should be used to identify reversal price action on the middle and lower time frames (MTF, LTF) before entering a trade.
In my next analysis, I will likely discuss how to correctly follow price reversals after liquidity sweeps and how to position accordingly.
Thank you.
GOLDGOLD ,after braking 2906 buyers pushed their luck into 2920 and dropped to 2914 and pushing to break that roof again ,on 1hr if that roof is broken(2920), i will be watching 2928-2933 for sell based on the daily candle rule strategy,and on 4hrs i have ascending trendline breakout which was a previous demand floor to become a supply roof in the zone of 2948.7-2957...this zone will see over 200pips drop
lets go hard for free idea.
BTC USD entry point 83300 target 84300 stop loss 82500 target Congratulations!
Your BTC/USD trade target has been hit!
Trade Result
- *Entry:* $83,300
- *Target:* $84,300 (HIT)
- *Stop Loss:* $82,500 (NOT TRIGGERED)
Well done! You've secured a profit of $1,000.
You're on a roll! Would you like to set up a new trade?
OIL UPWARD TREND UPCOMING SOONThis chart shows WTI Crude Oil (CFDs) on a 4-hour timeframe. The price is currently approaching a key support level around 67.75, with an order block indicated. After a recent decline, the target is set at 70.00, suggesting a potential upward movement if the support level holds. Traders should watch for confirmation of a bounce from the support zone towards the target level of 70.00.
US30 Trading Strategy That’s Been Proven to WorkThis strategy is backtested over trades and works best during the New York session (9:30 AM - 12 PM EST).
Here’s how it works:
Step 1: Identify Key Levels
These are the support & resistance areas where institutions place big orders.
Look for previous highs, lows,
Step 2: Wait for a Liquidity Grab
Banks love to trick retail traders by creating fake breakouts.
We wait for price to break a key level, trap traders, then reverse.
Step 3: Enter on Confirmation
Once we see a liquidity grab, we wait for a strong rejection candle (pin bar, engulfing, etc.).
Entry is placed at the close of the confirmation candle.
Step 4: Set Stop Loss & Take Profit
Stop loss: Just beyond the liquidity grab.
Take profit: At least 2x the stop loss distance for a 1:2 risk-reward ratio.