$4 📉
$4 nosedived 5.5%, bottom fishing time?
- This dump was likely a stop hunt or liquidation event; the trend is still bearish, but after such a strong move down, some retracement or sideways action is likely before the next big move.
- My main expectation is for the price to attempt a weak bounce, possibly up to the 0.009944 or 0.010340 resistance areas, before facing new selling pressure. If bearish confirmation appears in those zones, it's a prime setup for a short entry.
- Example short trade scenario: Wait for the price to bounce toward 0.010340, watch for a rejection candle (like a pin bar, bearish engulfing, or strong lower high on the 5m/15m), then enter short targeting 0.009577 first, then 0.008501, then 0.008070. Place the stop-loss above the swing high formed during the bounce.
- Example long scalp scenario: If price sweeps below 0.009000 and forms a bullish engulfing or double bottom, enter long only after confirmation on lower timeframes. Target the 0.009944 or 0.010340 level, managing risk tightly with a stop below the manipulation low.
- If price closes and holds above 0.010446 with strong bullish volume, the bearish setup is invalidated and I’d expect a move toward 0.011262 and possibly 0.012234 to fill in imbalances above.
📝 This is not investment advice, just an educational report to help you understand the current structure and possible scenarios. Always wait for confirmation and manage your risk!
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#4