Earlier today Bitcoin attempted to push higher through a local resistance level (only on the 1hr, so not too major) and was faced with a hard rejection, creating a small swing failure pattern. But there are a few things in particular I like about this SFP.
First, large market reversals or trend changes start somewhere on lower timeframes before carrying to larger timeframes. So watching for a move like this on a timeframe such as the 1hr has potential to carry over to a more significant market shift.
The 1hr chart shown above shows a heavy bearish candle closing price back below the resistance level. There were a few candles closed above resistance but one significant bearish candle that locked price back under that level.
The next thing I like about this, is if we zoom out to a 4hr chart (shown below), this doesn’t look like any kind of resistance breakout, it simply looks like a very firm rejection of resistance.
And the extra icing on top that helps this idea is that a macro high that we can see on a 1Week chart (shown below) has been cleared. Having this cleared is a large piece of confluence for the small SFP we observed because this would’ve been a large area of placement for short positions that would’ve been liquidated.
Earlier today Bitcoin attempted to push higher through a local resistance level (only on the 1hr, so not too major) and was faced with a hard rejection, creating a small swing failure pattern. But there are a few things in particular I like about this SFP.
First, large market reversals or trend changes start somewhere on lower timeframes before carrying to larger timeframes. So watching for a move like this on a timeframe such as the 1hr has potential to carry over to a more significant market shift.
The 1hr chart shown above shows a heavy bearish candle closing price back below the resistance level. There were a few candles closed above resistance but one significant bearish candle that locked price back under that level.
The next thing I like about this, is if we zoom out to a 4hr chart (shown below), this doesn’t look like any kind of resistance breakout, it simply looks like a very firm rejection of resistance.
And the extra icing on top that helps this idea is that a macro high that we can see on a 1Week chart (shown below) has been cleared. Having this cleared is a large piece of confluence for the small SFP we observed because this would’ve been a large area of placement for short positions that would’ve been liquidated.
