On the left we have the coinbase 4hr chart from October.
You can see the shakeout drop from 7990 to 7300
There is a spike in volume which acts as a spring to pump price to 10540
On the right we have the coinbase 4hr chart from November.
Don't be fooled in to thinking this is the same price action.
After distribution finished, the price dropped.
Slowed by the moving average, walls on exchanges to encourage people to long.
Compare the volume profile.
So far there is no volume here and once enough leveraged longs are in, I expect the drop to continue.
There could be a small rise to liquidate bottom shorters, in which case I would be looking at 9030-9070.
You can see the shakeout drop from 7990 to 7300
There is a spike in volume which acts as a spring to pump price to 10540
On the right we have the coinbase 4hr chart from November.
Don't be fooled in to thinking this is the same price action.
After distribution finished, the price dropped.
Slowed by the moving average, walls on exchanges to encourage people to long.
Compare the volume profile.
So far there is no volume here and once enough leveraged longs are in, I expect the drop to continue.
There could be a small rise to liquidate bottom shorters, in which case I would be looking at 9030-9070.