$BTC
## Technical Analysis for Medium Timeframe on the 1-2 Scenario
### Overview
Currently, we are observing critical movements within the wave structure, with validation of the 1-2 idea occurring across three lower degrees within the hierarchy. This indicates a strong potential for further price movement but also comes with crucial levels of validation and invalidation that traders should be mindful of.
### Current Structure
1. Wave Hierarchy:
- The market is at the absolute peak validation for the 1-2/1-2 pattern. This suggests that we are likely completing a corrective structure (potentially an ABC or another pattern) and are primed for an upward movement if our primary setup is correct.
2. Micro Timeframe Analysis:
- On the micro timeframe, considering a flat correction as the last resort for the intermediate degree wave 1-2 (marked in orange) gives us caution. Flat corrections typically inflect at a higher degree and signify potential trend reversals or deeper corrections.
### Key Levels to Watch
- Soft Invalidation Level: 94161
- This is the first level where we should be cautious. A break below this level may indicate a weakening structure but is not a definitive signal to abandon the bullish outlook yet.
- Critical Level: 91263
- The breach of this level would raise serious concerns regarding the validity of the bullish wave count. It warrants close attention as it could suggest a more prolonged corrective phase or a trend reversal.
- Entire Invalidation for Wave 2:
- Levels below the critical 89256 would invalidate the entire wave structure for the current wave 2 scenario. Traders must pay attention to price movements relative to this level, as sustained trading below could indicate the necessity to reassess the overall trend.
By adhering to this analysis and remaining disciplined in your trading approach, you can navigate the complexity of the current market structure more effectively.