To be honest, the incremental window doesn’t wait. The order book structure of $ZEC is already providing undeniable signals. On the four-hour timeframe, the peak of this rebound is getting lower each time, and the volume is shrinking in sync. This doesn’t look like what a shakeout should look like. When I read the chart, I usually start by checking how volume and price work together. This three-leg advance pulled up from the bottom—each leg’s peak trading volume is trending downward. When the third leg surged, the volume was already less than half of the first leg. Price made a local new high, but the volume can’t keep up—this kind of divergence in a four-hour structure is a textbook sign of momentum exhaustion.
Even the funds doing the pull-up are hesitating. The breakout-followers outside the market are even less active. As they push higher, the costs rise more and more. And that so-called “dog dealer” isn’t doing charity. Also look at market cap and liquidity. $ZEC has a certain size already set in stone. Trying to hard-pull it with just a few large orders creates problems with slippage and follow-through. There aren’t enough shorts, which means there isn’t a sufficient opposing bid to catch the sell orders. So when it drops, it becomes even smoother—sell walls are thin below, and with a slight push, there’s a gap and then another. In this kind of structure, accelerated selloffs are often easier than slowly grinding down.
The key level I’m watching is the neckline area where the previous leg began to rise. If that area gets swallowed by a bearish engulfing candle, the entire three-leg structure can be considered finished, and the next move is likely a main decline. As long as the rebound highs above don’t get effectively broken, the short thesis remains valid. In terms of risk-reward, chasing longs here is clearly less cost-effective than waiting to see a breakdown and then shorting in line with the trend—it’s much clearer. The market won’t lie. Volume and structure have already said everything plainly. At this point in $ZEC , I lean bearish; the breakdown is only a matter of time.
To look at the broadness of mountains and seas, and to discern the market’s fine details.
Walk with Uncle Xiong, and see the skies of gains and losses.
#ZEC
Click below to trade 👇
Even the funds doing the pull-up are hesitating. The breakout-followers outside the market are even less active. As they push higher, the costs rise more and more. And that so-called “dog dealer” isn’t doing charity. Also look at market cap and liquidity. $ZEC has a certain size already set in stone. Trying to hard-pull it with just a few large orders creates problems with slippage and follow-through. There aren’t enough shorts, which means there isn’t a sufficient opposing bid to catch the sell orders. So when it drops, it becomes even smoother—sell walls are thin below, and with a slight push, there’s a gap and then another. In this kind of structure, accelerated selloffs are often easier than slowly grinding down.
The key level I’m watching is the neckline area where the previous leg began to rise. If that area gets swallowed by a bearish engulfing candle, the entire three-leg structure can be considered finished, and the next move is likely a main decline. As long as the rebound highs above don’t get effectively broken, the short thesis remains valid. In terms of risk-reward, chasing longs here is clearly less cost-effective than waiting to see a breakdown and then shorting in line with the trend—it’s much clearer. The market won’t lie. Volume and structure have already said everything plainly. At this point in $ZEC , I lean bearish; the breakdown is only a matter of time.
To look at the broadness of mountains and seas, and to discern the market’s fine details.
Walk with Uncle Xiong, and see the skies of gains and losses.
#ZEC
Click below to trade 👇