Check out the highlighted Japanese area:
* Previously, there was a massive spike in volume.
* The price dipped below the support around 61.8k and then bounced right back up.
* Those who see a strong bearish candlestick often think the structure has broken and jump into a short position.
* However, the price didn’t keep dropping but instead returned to the accumulation zone above.
This is a classic bear trap:
Pushing the price down to lure in sellers, then reversing to sweep the SL of the shorts.
If the money flow scenario plays out:
1. Liquidity sweep below the bottom.
2. Absorb the selling pressure.
3. Accumulate.
4. Rally up towards the upper red EMA zone.
- This is just my personal take.
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