We've had a bit of bull-spring / short-squeeze at 34k, and now have some small potential to reverse the daily bear trend by breaking above 41k. This will however require a ton of bullish pressure for an extended period of time for that to happen.
As long as we remain in the yellow zone, having higher low but staying below 41k / the blue downtrend resistance trendline you see here, then we are simply in a relief rally.
If we stay under 41k and the resistance trendline, but we start moving more sideways into the orange zone and making lower highs as implied by the descending resistance, then we will be slowing be eating up all the demand at ~34.5k until the bears come in to drop us into another bearish impulse.
But if we go into the orange area and eventually fail to break the 34.5k area (failing to make it a new resistance), then we break above the trendline resistance and do one of two things most likely. We may either accumulate or distribute in the blue zone, depending on how sentiment develops in that 34 to 41k range.
Finally, naturally, if we break above 41k and the trendline, we will have bulls back in control again and we could begin expecting each higher high to be a followed by a higher low; a bull-trend on this scale.
As long as we remain in the yellow zone, having higher low but staying below 41k / the blue downtrend resistance trendline you see here, then we are simply in a relief rally.
If we stay under 41k and the resistance trendline, but we start moving more sideways into the orange zone and making lower highs as implied by the descending resistance, then we will be slowing be eating up all the demand at ~34.5k until the bears come in to drop us into another bearish impulse.
But if we go into the orange area and eventually fail to break the 34.5k area (failing to make it a new resistance), then we break above the trendline resistance and do one of two things most likely. We may either accumulate or distribute in the blue zone, depending on how sentiment develops in that 34 to 41k range.
Finally, naturally, if we break above 41k and the trendline, we will have bulls back in control again and we could begin expecting each higher high to be a followed by a higher low; a bull-trend on this scale.
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Potential Wykoff Spring as a result of a volume-supported Distribution on the stablecoin dominance:
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