If we observe the bottom of 2022, in most cases bottoms are formed by a single impulse candle, as we can see.
As for re-tests, we usually don’t see an “ideal retest.” After BTC moved up from 16K to 25K, it then retested back to 19K, which aligned with 0.618.
If we apply the same principle to this impulsive candle in the upward direction, then any push downward is very likely to be shallow. The 73–70K area could act as a local range low before pushing above 80K.
Before that, I expect a certain range to form: it will accumulate delayed longs and create liquidity. Even later, we could see another “sweep” above 79.5K before the final “flush” to the lower end of the 70s, followed by an expansion.
Typically, after trend-changing impulsive candles, you don’t see an immediate pullback like this because it destroys the purpose. The market must first build the long liquidity for the final sweep and the expansion.
So, before testing any of these lower zones, we may expect more range-based movement to accumulate liquidity.
As for re-tests, we usually don’t see an “ideal retest.” After BTC moved up from 16K to 25K, it then retested back to 19K, which aligned with 0.618.
If we apply the same principle to this impulsive candle in the upward direction, then any push downward is very likely to be shallow. The 73–70K area could act as a local range low before pushing above 80K.
Before that, I expect a certain range to form: it will accumulate delayed longs and create liquidity. Even later, we could see another “sweep” above 79.5K before the final “flush” to the lower end of the 70s, followed by an expansion.
Typically, after trend-changing impulsive candles, you don’t see an immediate pullback like this because it destroys the purpose. The market must first build the long liquidity for the final sweep and the expansion.
So, before testing any of these lower zones, we may expect more range-based movement to accumulate liquidity.
