📌 HOW TO READ CONGESTION ZONES TO ANTICIPATE A PRICE EXPLOSION

In crypto trading, congestion zones represent moments when the price moves laterally over an extended period. This means that neither buyers nor sellers truly dominate the market. This type of situation creates a compression that often precedes a strong movement in one direction or the other.

Knowing how to spot these zones is a key skill to anticipate violent breaks, whether upwards or downwards.

Here’s how to identify them effectively:

🔸 Observe the narrow ranges on timeframes like 1h or 4h. The price moves between a well-defined support and resistance with little volume.

🔸 Note the gradual decline in volume. This indicates a temporary loss of interest that prepares for a sudden resumption of activity.

🔸 Watch for frequent wicks. This shows that the market is hesitating and that orders are accumulating on both sides.

🔸 Use tools like Bollinger Bands. When they tighten, it means volatility is at its lowest, and an expansion is imminent.

🔸 Stay alert to economic announcements or crypto news as they can be the catalyst that pushes the price out of its congestion.

➡️ A well-identified congestion zone allows you to place strategic orders in advance and fully benefit from the ensuing movement. Keep in mind that it is essential to confirm the breakout with volume to avoid false breaks.

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