After a strong rebound from the low zone, BAT climbed quite steeply and left a very familiar sign: RsiSE appeared right at the peak. This is a signal indicating that upward momentum has significantly depleted in the last pull. Immediately after that, the price could not expand further and began to react negatively, with green candles shortening and wicks appearing on top. RSI could not maintain the strong zone, sliding down quite quickly, indicating that the chasing buying money has lost interest.
In terms of structure, BAT has not convincingly broken the distribution zone above, and the current pullback resembles more of a pullback rhythm in a corrective trend. When red candles start to dominate and the recovery weakens, the common scenario is that the price will test lower zones again to seek liquidity. Shorting in this context is following the footsteps of the money flow that has previously exited, rather than trying to Long in a high-risk area.
