$BTC is also trading within a range in which both parties have just been compelled to respond. The thrust to 68.3K region probed apparent liquidity above previously high levels. That move was met with supply. The reaction was swift. Upper wicks formed. Sell pressure hit the tape. It was not puritanical acceptance.
The ensuing breakdown was a sharp cut that was reaching a point of liquidity below short-term structure. The nature of that step was that of a stop run uprooting broadening feelings enforced sales.The selloff did not cascade. It stalled.
A breakdown that has no continuation is usually an indication of absorption and not new distribution. During times of expansion, aggressive sellers drive the price down hoping to expand. When the book is not becoming thin underneath and price is regaining composition in a short period, then demand is existing and ready to take up.
On the rebound, price rose up towards the mid range in the absence of a lot of countertrend pressure. Volume added to the impulse but failed to exhibit heavy rejection continued into the bounce. The highs were the time when sellers were active and they have not taken control of the reclaim forcefully.
A rally would be sold instantly with growing volume and obvious rejection in case supply were predominant. Rather, the market is normalizing following a liquidity mop on both ends.It is the failed breakdown of the tell.Liquidity below was taken.
Stops were cleared. But price was plaguing at the knees. The offer does not have any persistent reload. No long term downward growth. That implies fatigue of late sellers and compelled liquidations that have already been done.
The market is now probing upwards once again. In case of uphill, imbalance may build up easily, given that supply is thin and few challenges are present. In case heavy supply returns and determines prices, rotation continues.
Today the highway of least resistance is no longer smooth sailing. The failed continuation decreases the structure to neutrality and the upside pressure accumulation starts.
