After the candle closed yesterday as a long lower wick red hammer candle, continuing the upward trend from yesterday, BTC rose slightly to the price level of 72k, sweeping through the highest price of the green candle on March 23.
Then it dropped back during the US session today.
In the 4h timeframe, we can clearly see the engulfing candle with high volume after the BTC price recovered to the level of 72k.
❓ Is this a sign of liquidity sweeping followed by a drop from the big players?
Currently, in the 4h timeframe, the price is at the equilibrium zone, still being held above EMA21, RSI has not dropped below 50.
➡️ Therefore, the recovery wave of BTC is not completely weakened, it is still advisable to wait for a few confirming factors.
📉 Trading scenario
Wait for a few more 4h candles, watch the price:
- Close below EMA21
- RSI crosses down below the average line and slopes down below 50
➡️ At that point, the probability of BTC continuing the downtrend is higher, can expect the price to drop to the 67k zone and lower.
📈 Scenario 2
If the price continues to sideway up, breaking through the 72k level in the smaller timeframe (1h, 15m), can long scalp up to the price zone of 72k 🚀
👉 Then observe the price action to decide whether to continue long or short.