In the long term, the price structure and decreasing supply indicate that it is showing characteristics of a reaccumulation process according to Wyckoff's method.
However, in the short term, everyone needs to be very cautious because:
- From March 2nd to March 4th, volume increased significantly, indicating that both Demand and Supply are rising.
- The issue lies in the candle on March 4th. Although it has volume equal to the candle on March 2nd, its size is much smaller. This means a large amount of supply has appeared, preventing the price from moving upwards.
Therefore, the likelihood is high that the price will sideway around the 0.65 - 0.8 area to absorb supply before entering a bullish phase.
