It's squeezing the ATR down around 5200 which means it's going through the process of building a value area so it can eventually break out of the range.
6000 would be a good area to look for swing shorts. Entering a swing trade while it's on the point of control is a bad idea because it will probably get chopped even if the trade is correct on the direction.
Overall swing trading ideas are to trade back to the center of the range. Trading while it's near the point of control should only be done on short time frames with small risk and take profits quickly. Don't shoot for runners while it's still near the middle of the range. Just find a fib extension on a small time frame and strangle the stop when it gets close.
Because it tested to 4500 and found high volume there, it means it will almost definitely retest near there again and will continue to do so until a test produces only small volume which indicates there are no more sellers at the lower end of the range.
At that point you can expect it to go into a tight ATR absorption path that has no pullbacks while the smart money soaks up all the crypto they can at low prices without moving the market very much.
The halving will eventually force it up out of this range but expect shakeouts lower before that happens. Until it has a higher low with low volume the overall swing trading bias is downward. After that it will be strongly upward.
6000 would be a good area to look for swing shorts. Entering a swing trade while it's on the point of control is a bad idea because it will probably get chopped even if the trade is correct on the direction.
Overall swing trading ideas are to trade back to the center of the range. Trading while it's near the point of control should only be done on short time frames with small risk and take profits quickly. Don't shoot for runners while it's still near the middle of the range. Just find a fib extension on a small time frame and strangle the stop when it gets close.
Because it tested to 4500 and found high volume there, it means it will almost definitely retest near there again and will continue to do so until a test produces only small volume which indicates there are no more sellers at the lower end of the range.
At that point you can expect it to go into a tight ATR absorption path that has no pullbacks while the smart money soaks up all the crypto they can at low prices without moving the market very much.
The halving will eventually force it up out of this range but expect shakeouts lower before that happens. Until it has a higher low with low volume the overall swing trading bias is downward. After that it will be strongly upward.
