Trader's thoughts 😁
At a time when the price of Bitcoin (BTC) was trading near the $95,000 level, clear technical signals appeared indicating that the market had entered an Overextension (excessive price extension) phase, which increased the likelihood of a strong price correction in the following period.
The technical reading at that time
On the larger timeframe, the price showed a sharp and rapid upward movement, which is often followed by a Pullback (temporary correction) to rebalance the market.
• RSI Indicator (Relative Strength Index)
It was moving near the level of 78, which is classified within the area of
Overbought Zone (تشبع شرائي), which is an area where the chances of a decline or price cooling historically increase.
• The price candles showed a nearly vertical rise, which is a pattern known as
Parabolic Move (Sharp and unhealthy price movement in the short term).
• The absence of intermediate corrections reinforced the scenario of targeting lower support areas for re-testing.
Price expectation from the level of $95,000
Based on this data, the expected scenario was a price drop towards the area of $59,000 – $60,000, considering it as an area:
• Strong Demand Zone (منطقة طلب قوية)
• And an appropriate level for liquidity re-accumulation
• And a healthy correction within the overall trend
This expectation was clearly documented at that time, while the price was still above $95,000.
What happened next?
Over time, the price moved according to the expected scenario, and the downward wave gradually began until Bitcoin actually reached $60,000, meaning that:
• Touched the expected price target
• The technical scenario achieved a high level of accuracy
This confirms that the reading was not random, but rather based on understanding market behavior and Market Structure (هيكل السوق) and not on news or emotion.
What comes after touching 60,000?
The price touching this level does not necessarily mean the end of the movement, as the market is now in a phase:
• Decision Zone (منطقة قرار)
• Where it will be determined whether the price will start
Reversal (Bullish Reversal)
Or enters into
Consolidation Phase (مرحلة تذبذب وتجميع) before any upcoming movement.
The discussion is still open, and the next follow-up will be based on price behavior, trading volume, and market reaction around this sensitive area.
#MarketCorrection #RiskAssetsMarketShock #WhenWillBTCRebound
