BTC Fakeout and heading to the $28K area
BTC /USDT
1D/1W Charts
Failed to start a new bullish trend from the protected HL and daily demand zone and has now failed the low and zone showing bears are in full control.
The idea of this rising channel being one big liquidity inducement looking a lot more likely now, having taken the liquidity from the prior highs and mitigating HTF supply before sustaining a downtrend, taking out the HL. I think we will see the extreme demand zone near the monthly swing low structure around $28,000 as thats the next zone to target. This would clear liquidity on the lows taking out all the longs therefore clearing both sides. There has also been a series of inducement traps occurring, luring retail traders into buying breakouts on the LTF which i will highlight on the next post.
I took a look over my wyckoff book to compare the schematics of the most recent rising range and it looks exactly like a distribution range and the comparison can be seen in my telegram channel
If we fail the extreme demand zone and low, im afraid we will have turned bearish on the HTF as currently, monthly structure is still bullish having put in HH and HL formation, its a real decisional point in the market right now, especially with the economic outlook being bleak and talks of recession, rising interest rates and soaring inflation alongside the stock market and how crypto correlates with stocks, there is a level of uncertainty in the market about what is next for BTC and alts.
Right now though, i am short term bear for a possible bullish scenario as we come into 28K, it really depends how we react as we come into the lows and something to watch closely. Stablecoins have almost fully took control again, losing their bearish momentum and starting to show signs of strength and going for their highs and taking out supply zones.
Im personally sat on the sidelines full USDT at present and risked off given the dynamics and what ive been monitoring across a range of pairs. Patience is virtue here and dont rush into buying anything until we have clearly started to show signs of a reversal and manage your risk accordingly to your plan. Dont get caught out buying pumps into supply zones!
