BTCUSD updateOleg Alexandrov
On the BTCUSD Sunday update (join my Telegram), I wrote:
We have 4 bullish trend lines. Study the volume/price around line A (very top).
1] EVRT. Prices climb higher, but the progress stalled despite the high volume (efforts). This is a sign of hidden weakness.
2] Extremely volatility bar. Professional money was definitely active there. Ordinary traders could not push the price up-and-down widely with such high volume. Guess, what are they doing?
3] No Demand. The market faces a lack of buyers, traders won’t agree to buy there, bitcoin is overvalued above 10k.
4] Bearish change. Price decline amid an increase in volume after ND.
What is next? While the price is holding below the high of the bar  – the situation is more bearish. If line B will be broken down, expect support from C or/and D.
How it can be used for searching the setup?
The important thing, you should act in harmony with market character. I wrote – While the price is holding below the high of the bar  – the situation is more bearish.
So, where can be found the setup for shorting? SLKT – probably the most powerful sign to join the bearish move.
Here is the setup.
After the breakdown of Line B, the price bounced up from 9500 round number . In the overall bearish context, this bounce was unlikely to expand in the big move. More likely it should be a minor correction. Where is it going to end? Round numbers very often help to spot the end of the move on the BTCUSD market. 9800 was the perfect level to focus because this number is sitting right at the level of broken line B.
Now let’s switch to the faster timeframe to get confirmation and minimize the risk.
- 6] Culmination of minor up-wave
- 7] Three red bars in a row. Not so bullish for a round number.
- 8] Minor SLKT (trap) confirmed by the next red bar. It tells you – the market is not going to move higher above 9800.
Here is the cluster view.
Here  you got enough facts to justify your shortening. Sellers are turned the Character.
What is next?
The congestion of line C (watch the big chart) and 9500 round number is going to produce the support. Despite this bullish expectation, bears have more power on the current move from 10400+ highs. In Case of breakdown 9500+C -> next stop will be around 9k+D line.
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