Top Crypto Analyst Explores Bitcoin (BTC) Market Structure Giving Traders “Nightmares”
A popular crypto strategist says Bitcoin (BTC) forms a structure that tends to give traders sleepless nights.
The Pseudonymous Immortal Analyst recount its 174,000 Twitter followers about Bitcoin’s recent pattern of long consolidation followed by a brief rally and then a deeper price drop.
“Lately, there is a structure that gives many traders nightmares. Let’s see why this happens and how to redeem it.
He said that the structure has become so common because, during the bear market, most people trade against the grain. The problem is that there is no real demand during the recession, so average investors fall into bullish traps and end up being liquidated.
“As it descends, price finds areas of interest with enough liquidity to cause price to stop and form what looks like a lower structure, price goes back up a bit and FOMO people [fear of missing out] buy it while the high rollers use those moves as an exit.
The [are] no new players and real demand to maintain an uptrend for the price to sell at the first level of resistance and make new lows.
Immortal then recount his supporters how he thinks they could navigate this market structure.
“The first part of this structure is the local low, but the most important point is the high that forms after that, because after a boring consolidation, that will be the level where the average investors will enter FOMO and the big players will fade them and will sell…
After Deviation/SFP [swing failure pattern]we usually see a sell-off that pushes us to reach the low of the range (consolidation, not the local low), if the reaction is weak, it is likely that new lows will be seen soon.
The trader says that just like other market patterns, this one will also likely change as it repeats itself more often and more people notice it.
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