Satoshi_Magnet

Bitcoin Price Action Analysis

BYBIT:BTCUSD   None
DISTRIBUTION:- Distribution stock refers to a large blocks of a security that are carefully sold into the market gradually in smallerblocks so as to inundate the market with sell orders for the security and driving down its price.Traders also refer to the dynamic of securities being sold this wayas simply "distribution."
Distribution assets refers to the sale of shares by larger institutions. Distribution is an important dynamic that institutional investors must manageto avoid precipitous drops in bitcoin prices. Institutional investors use trading algorithms or dark pools to accomplish large-scale sales of shares.

REDISTRIBUTION :- Redistribution begins with volatility and ends with volatility. typically a selling climax initiates the Redistribution process. theredistribution process looks eerily similar to Distribution.

HEAD AND SHOULDER PATTERN :- Technical Analysis, detailed many studies on the performance of this pattern. The result of all the data is that the Head And Shoulder Pattern is the most profitable of all standard patterns. Interestingly, Dalquist and Kirkpatrick made no distinction between the performance of the head and shoulder pattern and the inverse head and shoulder pattern (sometimes called the bottom forming head andshoulder pattern). While this pattern is successful across many markets, it is also the pattern that causes the most losses to new traders. We’ll get into the specifics of why this pattern destroys a good number of traders.
Head and Shoulder Pattern confirm with If the volume in the left shoulder is greater than the right shoulder, here is an increased likelihood of the head and shoulder pattern completing. If the volume in the right shoulder is greater than the left shoulder, failure rates are higher. Horizontal necklines increase the probability of a head and shoulder pattern completing. The more dramatic the slop of the neckline, the more likely the pattern will fail to develop. Aggressive entries can be taken immediately when the pricebreaks the neckline. Conservative entries can be taken after the neckline has been re-tested post-breakout. If price breaks the neckline, retracements occur almost 70% of the time.

SUPPLY ZONE :- market can be understood and anticipated through detailed analysis of supply and demand, which can be ascertained from studying price action, volume and time, When demand is greater than supply, prices rise, and when supply is greater than demand, prices fall. The trader/analyst can study the balance between supply and demand by comparing price and volume bars over time. This law is deceptively simple, but learning to accurately evaluate supply and demand on bar charts, as well as understanding the implications of supply and demand patterns, takes considerable practice.

MITIGATION BOX :- When big orders establish there price structure and or ranges within any currency pair, the future order flow is based on certain levels of the preceding trading range. Sometimes critical levels can be over shot due to orders being to strong and or cap levels not being maintained. When price dives deep or sells off into a substantial low breaking previous lows with out reacting or bouncing after the liquidity was targeted, this one time creates thin liquidity normally resulting in a sharp counter move back to the original pointof origin, however if the market makers display interest in the new re pricing range, they may just mitigate there loss or re structure the loss and wind off those previous longs at the point where the liquidity was tapped into below the previous lows, hence mitigation comes into the market forcing price back down from the breaking level using the breaker block zone as resistance.

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