Study this PNF chart (mixed data from 5 crypto exchanges). 

Note columns [1 and 2]. They both:

  • red wide down-columns
  • pushing price down from top-line of the bullish channel
  • has an increase in volume (bearish change in character 

What are the inner workings behind them?

In point [3] market faced resistance seen by extra-high volume up-column. And after SLKT-Trap [4] above round number 9k, the price declined to the bottom line of the bullish trend channel. Also, this decline tested the line of breakout [5] plotted after the demand surge column [6]. 

So, this decline from Trap-Above-9k to 8300 knocked out many FOMO-buyers who entered longs during 10 days from the 13th to the 23rd of January. Note the Bullish Change in the Zone [7]. When the volume on down-columns is INCAPABLE to reach progress, but the volume on up-columns starts to reach higher highs – this is a positive change and the signal to resuming of up-trend.

Now let’s turn to the most recent action. These recent big volumes on bars can represent the buyers entered into Trap-Above-10k. The move [2] locked them in losses. So, if the current market will develop the same way as in the 20-26/Jan (very likely), then breakout buyers should prepare for fixing their losses. What I am confident in – the green zone (made by crossing of SFDB line [8] and the bottom line of the uptrend-channel) will produce notable support.

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