On the daily timeframe, we notice a harmonic reversal pattern forming. It has now reached Point D around $107,000, a historical resistance area.
Key Technical Points: • The price is at the pattern completion area (D), which is likely to begin a corrective movement. • Trading volume remains relatively low despite the uptrend, weakening the chances of continued momentum.
• Confirmation of the decline requires a clear break of the support areas of 103,900 and then 101,000.
• Bitcoin reached strong resistance areas between $105,000 and $109,000, but failed to break through, and momentum began to show a clear weakness.
• The short-term uptrend has been broken, and it is now trading at $102,500. With the lack of buying momentum in these areas, we are beginning to see signs of a potential reversal.
• The most likely scenario currently is the start of a downward correction targeting the $79,000-$74,000 areas, which are considered a pivotal support area in the short to medium term.
• The declining trading volume despite the rise supports the weakness of the current upward trend and confirms the possibility of a correction
A general upswing doesn't mean randomly entering any coin you see in the green.
Practical example:
$LAYER is already moving within a strong ascending channel, but it's currently at the channel's ceiling, and with a clear overbought zone, entering now is considered risky.
The smart decision?
Waiting for a correction to the lower boundary of the channel, which are technically stronger and less risky buying areas. 😎👌