BTC Trading in Price Discovery Zones (Price analysis)Bitcoin in Price Discovery: Understanding and Trading in Uncharted Territory
When Bitcoin or any asset reaches an all-time high (ATH), it enters a phase known as price discovery. In this phase, the market operates without historical price references, navigating uncharted territory to determine fair value. For traders and investors, this presents both an opportunity and a challenge. Employing techniques like Elliott Wave Theory and analyzing price and volume dynamics can help strategize trades during this unique phase.
What is Price Discovery?
Price discovery occurs when an asset ventures into price levels it has never reached before—most often at its ATH. Without prior data for resistance or support, the market relies on demand, supply, and speculation to set new price benchmarks. Understanding how price reacts in this phase requires both macro and micro analysis.
Elliott Wave Theory in Price Discovery
Elliott Wave Theory offers a framework for understanding market psychology and price movements. In the context of price discovery, the B Wave of an Elliott Wave formation plays a pivotal role:
Identifying the B Wave and Pullback Zones
The B Wave represents a pullback into a range after an impulsive move upward (Wave A).
Mark the peak of the impulsive move (A) and the bottom of the pullback (B).
Project this range forward in time to identify potential support zones.
Support Zones in Price Discovery
The previous high (Wave A peak) forms the top of the support zone.
The B Wave low forms the bottom of the support zone.
Once the price pulls back into this zone, it signals a potential retest of the support, offering opportunities for reentry into the trend.
Drilling Down: Smaller Timeframes for Confirmation
When Bitcoin retests these support zones, zoom into smaller timeframes to assess price reaction and volume behavior. Look for:
Bullish Change in the State of Delivery: This includes higher highs and higher lows, increased buying volume, and bullish candlestick patterns such as engulfing candles or hammer formations.
Volume Confirmation: Strong volume on upward moves and decreasing volume during pullbacks indicate sustained bullish momentum.
At these support zones, the price is likely to resume its bullish trend if the market shows these signs of strength.
Managing Risk in Price Discovery Zones
Despite bullish setups, price discovery is volatile, and false breakouts can occur. To safeguard trades:
Watch for Fair Value Gaps (FVGs)
Look for large, unfilled price gaps from prior resistance areas.
These gaps might signal areas where the price could retrace deeper before confirming support.
Adjust Entries and Stop Losses
If price breaks below the initial support zone (top of Wave A), it may retest the bottom of the B Wave for further consolidation.
Set stop losses below the bottom of the B Wave to protect against unexpected reversals.
Evaluate Volume-Driven Moves
Weak volume during a retest could indicate insufficient demand to support the price, suggesting a deeper pullback or reversal is more likely.
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Price discovery is one of the most exciting and rewarding phases for traders who know how to approach it. By using Elliott Wave Theory, you can pinpoint key support zones, especially around the B Wave pullbacks, and then confirm your setups by analyzing price action and volume.
The key here is patience and precision. Let the price come to those critical zones you’ve marked, watch how it reacts, and make your move confidently. Stay flexible, though—price discovery is unpredictable, and managing your risk is crucial if you want to make the most out of this high-potential phase in Bitcoin’s journey.
Retest
All Time Highs on the Horizon!!!Price is on a Bullish Up trend In a Current Retracement.
This Thesis uses several different concepts. Based off of Market structure, support & resistance, RSI Divergence, Fib lvl's, ICT Concepts,
Daily: Bullish, Price is Rejecting Bullish TL and Testing structure , 61.8 prz (Daily Breaker Block forming)
H4: Bullish, Morning star R Pattern at H4 lvl
H1: Bearish (Wait for price action to return Bullish before entering)
Thesis:
Looking for price to bullish break H4 lvl to order block
and retest back to daily lvl 20595 / previous structure high zone, for bullish entry.
Notes:
price has a overall retracement 61.8 prz
Price rejecting off bullish Trend line
Price rejecting 4H FVG
H4 Hidden Bullish Divergence
Daily Bullish Breaker Block
Cons:
-4H could be a Head and shoulders Pattern if price rejects and doesn't break through Daily lvl 20595
Wait for H1 Time frame and Execution time frames to line up with macro Bullish Trend before Executing!
TP1: 21,150
TP2: 21,468 (ATH)
TP3: 22,242 Stretch Goal (ATH)
USDCAD We hit our First POI point. We needed to wait to observe the shift in the market structure with the bullish bias.
This is confirmed by the change of the market direction after breaking the last Lower High to create a new High.
On this direction bias, we notice that there are new breaks of structure that were caused by a consolidation or correction that pushed to break the previous high on that developing bullish leg, the correction was not retested, or mitigated.
Right here around this zone, we are starting to see the price coming back,
use your learnt entry models in the lower time frame structures to facilitate a roper entry.
GOOD LUCK
SWING IDEA - DEEPAK NITRITE LTDDeepak Nitrite , a leading chemical company known for its diverse product portfolio, is showing a promising setup for swing trading.
Reasons are listed below :
2500 Support Zone : The price is resting on a well-tested support level around 2500, adding to the reliability of a potential bounce.
Hammer Candle on Weekly Timeframe : The appearance of a hammer candle suggests a reversal could be on the horizon as buyers regain control.
Golden Fibonacci Support : The current price aligns with a key Fibonacci retracement level, providing additional support.
50 EMA Support on Weekly Timeframe : The price holding above the 50 EMA is a sign of continued strength and underlying support.
Trend Intact with Higher Highs and Higher Lows : The consistent formation of higher highs and higher lows reinforces a bullish trend.
Target - 3000 // 3170
Stoploss - weekly close below 2440
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@visionary.growth.insights
What are your thoughts on what's to come for SPX500?I think we're in for a sell to the previous structure high. Obviously a "Counter trend entry" to ride until we return bullish. Just my Thoughts.....What's your opinion?
Thesis: Bearish Bias break and retest (however either play is at hand). Wait for a break and retest
Notes: Every Bull run has had a correction to the previous structure high. Following that trend.
A Retest would be a 50% prz. for the recent move
and right around 23.6% prz for the entire move.
Daily: Bullish, Trading in a minor consolidation for the past few days.
-Reversal pattern with Doji (Loss of momentum) & Bearish Hammer.
-Con: Seller Exhaustion wicks under support
H4: Bullish ( **Hidden Bearish Divergence @ Minor resistance lvl) look for possible sell off
H1: Bullish
Looking for NAS100 to Short back to Previous Structure High. Notes: Possible descending triangle forming.
look fore bearish sell to trend line/61.8/H4 lvl or H4
Structure point 50% prz/daily lvl 20,595
H1 lvl showing possible Bearish trend beginning
LL & LH formed with Liquidity sweep just above LH
Daily: Bullish
H4: Bullish
H1: Bullish
Thesis: Price is bullish forming a descending triangle
preparing for sell off to trend line.
COIN: NOW IS TIME TO BUY, NOT LATERNASDAQ:COIN
COIN: NOW IS TIME TO BUY, NOT LATER
Pullback levels are so important because they allow you to understand what is happening to the stock you are trading or investing in.
Typically when a stock pulls back and peoples gains begin to deminish or losses begin to mount they let emotions take over and guide their finger to the SELL button.
But, as you can see on the chart and if you watched my don't FOMO into Coinbase video, you know that 80-90% of breakouts retest and we need to wait for that to happen before entering or adding to our position.
I present to you the pullback with levels: I'm 1/2 into my trading position at this time.
Lvl 1: The cup and Handle breakout point once resistance turned support - $283
Lvl 2: Price GAP fill at $273.50
These are the levels to watch and buy if you want into this trade.
All indicators are still BULLISH and we still have a #HIGHFIVESETUP
See previous video attached to this post if you missed the full thesis.
Like l Follow l Share
TURBO BREAKOUT ALERT: READY FOR A 150-160% SURGE!Hey everyone!
If you’re finding value in this analysis, don’t forget to hit that 👍 and follow for more updates!
TURBO is showing strong momentum! It’s breaking out of a bull flag formation on the 4-hour chart and has successfully retested the pattern, signaling readiness for a potential 150-160% rally. Accumulate some now and consider adding on any dips.
Entry Range: $0.0092 - $0.0099
Target: 150-160% gain
Stop Loss: $0.0084
This setup shows a powerful bullish trend for TURBO Coin! What are your thoughts on its potential? Share your analysis and insights in the comments below!
JASMY/USDT: BREAKOUT ALERT! READY FOR A 100% PUMP!!Hey everyone!
If you’re finding value in this analysis, don’t forget to hit that 👍 and follow for more updates!
JASMY is looking promising! It’s breaking out from a falling wedge structure on the daily timeframe and currently retesting, all while holding strong above the 200MA support level. This could signal a solid upside move—consider buying some here and adding more on any dips.
Entry Range: Current Market Price (CMP) and up to $0.0195
Target: 100% Gain
Stop Loss: $0.018
The setup for JASMY Coin looks decisively bullish! What’s your take on it? Drop your insights and analysis in the comments below!
Gold Intraday Tues.12NOV.24: Price struggling to bounce on 1HRThe Gold price downward move is taking a breather.
But I see that a recent 1HR bounce on the RSI did not gain any momentum from the bulls.
The 4HR chart is also stalling re the same.
2 charts from 1 link are enclosed and attached.
So any significant move up by Gold on the 4HR chart (left) I would be watching the 200EMA which coincides with an important Fib level to see if price gets rejected, which I would expect to occur. But I don't think price will bounce that far up. In other words, a further move down is more likely.
We see on the Daily chart that price is now just under the 50EMA, so Gold-bears are moving on this, but we have an even greater bearish view of Gold once price moves under the 200EMA, which is really not that far down from current price (right of screen).
Thanks for reading. Monitor closely any Short-trading in Gold with stop losses, as sentiment can quickly change bullish, especially on economic news generally at the start of the NY session, but also remember that Bitcoin is not the only one in a bull-market, the same can be said that Gold continues in a Bull-market-run and what we are witnessing is a healthy correction, where price temporarily falls, for example from 2 days to 2 months. This is why price can easily bust to the upside again 'at the drop of a hat', because that is the path of least resistance.
Retest on a GOOG Inverse H&S Pattern! 🔉Sound on!🔉
Thank you as always for watching my videos. I hope that you learned something very educational! Please feel free to like, share, and comment on this post. Remember only risk what you are willing to lose. Trading is very risky but it can change your life!
BTC: ATH Imminent? U.S. Election Could Be the Catalyst!Hey everyone!
If you’re finding value in this analysis, don’t forget to hit that 👍 and follow for more updates!
Welcome to this BTC Update!
BTC has broken out of the parallel channel on the daily time frame and is currently hovering near the retest area. The market has been unusually quiet lately—this feels like the calm before the storm, and I’m anticipating a major pump from here.
It seems the whole market is waiting on the outcome of the U.S. elections. After the election, I expect BTC to break its ATH, aiming for $90k-$100k by year-end.
Invalidation: Daily close below the $64.8k level.
What’s your take on BTC’s current price action? Are you spotting this bullish setup too? Share your analysis in the comments, and let’s ride this wave together!
BTC ANALYSIS🔮 #BTC Analysis 💰💰
🌟🚀In 4hr chart we can see a formation "Rising Wedge Pattern in #BTC. Also there is a breakdown of the pattern. We would see a small retest towards it's crucial support zone and then we could expect a reversal
🔖 Current Price: $67610
⁉️ What to do?
- We have marked some crucial levels in the chart. We can trade according to the chart and make some profits in #BTC. 🚀💸
#BTC #Cryptocurrency #DYOR #PotentialBreakout
ENA/USDT: Bull Flag Breakout! Strong Bullish Setup in Play!!Hey everyone!
If you’re finding value in this analysis, don’t forget to hit that 👍 and follow for more updates!
ENA is looking strong right now! It is breaking out from the bull flag pattern and a successful retest is also done. Long some at CMP and add more in the dip.
Entry range: CMP and add more up to $0.36
Targets:- $0.44/$0.50/$0.57/$0.64
SL: $0.345
Lev: Use low leverage (Max 5x)
What do you think of ENA’s price action? I’m seeing a strong bullish setup here! Share your insights and analysis in the comments below!
ZK/USDT Breakout Alert: Bullish Setup with 100%+ Gain Potential!Hey everyone!
If you’re finding value in this analysis, don’t forget to hit that 👍 and follow for more updates!
ZK is showing strong momentum right now! It recently broke out of a descending triangle and is currently in a retest phase. This could be a perfect opportunity to buy and accumulate on dips, with the potential for 100-130% gains ahead!
Entry Range: Current price and add more up to $0.132
Target: 100-130%
Stop-Loss: $0.111
What are your thoughts on ZK’s price action? I’m seeing a solid bullish setup here! Share your analysis and insights in the comments below!
ONDO/USDT Bullish Setup: Time to Buy for 100% Profit! Hey everyone!
If you’re finding value in this analysis, don’t forget to hit that 👍 and follow for more updates!
ONDO is looking strong right now! It just broke out of a falling wedge pattern on the daily time frame and is currently retesting the breakout level. This could be an ideal opportunity to buy and accumulate on dips, with potential for a 100% gain!
Entry Range: Current price and add more up to $0.70
Target: 100% - 120%
Stop-Loss: $0.60
What’s your take on ONDO's price action? I’m seeing a solid bullish setup here. Share your thoughts and analysis in the comments below!