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2023-09-06 18:33:17

Houston on Nostr: A truly fascinating sequence of price action is unfolding. On the daily chart we are ...

A truly fascinating sequence of price action is unfolding.

On the daily chart we are trading within the range defined by the big down bar that was formed on August 17th.



To the layman's eye, it looks like we are just chopping around, but we are actually trading at an inflection point that is precipitating a big price move.

One way the chop is expressed in the price action is as a series of widening formations with higher highs and lower lows, which is kryptonite for traders using horizontal levels or previous pivots for stop losses.



What usually precedes big moves are choppy periods that chop up the majority of traders who are jockeying for the next move but eventually capitulate before the big move happens. Once the move is finally underway, those left behind are forced to chase the price or fear missing out on the price action they so desperately wanted to be ahead of.

Finally, take a look at the 1628 pivot. Notice how we've been chopping around this level?
Zoom out to the 3M chart and you can see that 1628 is the reversal pivot on the quarterly chart - which has become a battleground for buyers and sellers.
When the 1628 pivot gives way, we should see much lower prices.



The major timeframes are all trading 🔴 so my expectation is that this period of consolidation will eventually resolve to the downside and we visit the 1370 pivot as I have noted previously on my feed.



$BTC is trading in a very similar structure to $ETH, so I expect both $BTC and $ETH to resolve the consolidation in a similar manner.

#BTC #ETH #trading #plebchain
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