HTF (High Time Frame)
Since our symmetrical triangle breakdown, price has come to rest on the 50EMA. For the second straight week, we have been able to hold this level. While not the most bullish indication in sight, it still leaves room for a potential multi-candle reversal pattern to play out. Indeed it would take a powerful candle or two to get us back to 8.75–9.05k range, but the possibility must be acknowledged. I also believe a lot of people will have layered shorts in that region, so it would likely reject upside continuation. 7.8–8k remains immediate support, while another leg down could lead to 7.0–7.45k.
So far, our very weak bounce has touched my minimum target at 8.4k. A volatile move can spike or drop the price up to 8.8k or down to 7.2k in a single LTF candle. We have seen this many times. As such, it is not recommended to chase these moves. Wait until price settles and remember our recommendations of scaling in for long-term positions. Below 7.45k, we may visit 7.25k, 6.85k and even 6.2–6.6k in an unlikely scenario. All of these levels will be big opportunities if visited IMO. Trying to pick the very bottom will leave many investors behind.
MTF (Mid Time Frame)
4H (4 Hours)
A clear equilibrium pattern (EQ) setup has taken shape here. It is a classic ‘no trade zone’. We will have a clearer direction once it picks a path. A break below 7986 would lead to downside continuation to 7.7–7.8k, while a break above 8532 would lead to 8.75–9.05k. I don’t suggest playing the MTF price action while we range in this pattern.
LTF (Low Time Frame)
1H (1 Hour)
Watch for the LH, HL pattern to break. This is when I expect volume to spike and a significant price move to occur. While we are in the range, trades carry higher risk because classical indicators are unable to give reliable buy/sell signals. The best thing to do is watch the levels. A break of the EQ pattern can be played, but watch volume. If it is low, price may quickly reverse and form a wick. If volume is increasing, price should continue to move in that direction.
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