Greetings, esteemed investors! The market is once again showing strength, but as always, true understanding lies in identifying the “footprints” of major players. Our local analysis indicates that the recent rally has created ideal zones for a correction before the next impulse.
We are currently focusing on the concept of the Inefficiency Zone, also known as the Fair Value Gap (FVG). These are areas where price moved so quickly that it left behind unbalanced trades, and large players often bring the asset back to “fill” this gap before continuing the trend.
Bitcoin (BTC): Technical Analysis and Expected Levels
After the strong impulse observed yesterday, BTC has formed a clear inefficiency zone. This suggests a likely short-term pullback, which is healthy for the market rather than a sign of reversal.
Situation Description: Yesterday’s rally was aggressive, leaving behind an imbalance that often acts like a magnet for price.
Identified Inefficiency Zone (FVG): Range $89,500–$87,668.
Expectations: We expect the price to correct back into this zone. This will allow the market to accumulate new liquidity and create an ideal technical point for opening long positions. A retest of this area is a necessary condition to confirm a healthy trend.
Strategy: Look for signs of reversal and bullish confirmation within this range to target new local highs.
Ethereum (ETH): Synchronization and Entry Points
Ethereum shows strong correlation with Bitcoin, and its chart tells a similar story of imbalance.
Situation Description: Similar to BTC, ETH price has created an open zone resulting from a rapid upward move.
Identified Inefficiency Zone (FVG): Range $3,000–$2,950.
Expectations: We expect a similar reaction — a return of price to this key area. Filling this FVG will be an important step in validating the next growth phase.
Strategy: Monitor price reaction within the $3,000–$2,950 range. Successful holding of this level may serve as a signal for entry aimed at resuming the upward movement.
General Conclusions and Recommendations
The market currently demonstrates strong bullish sentiment, but traders need patience. Corrections into inefficiency zones are not panic events but a structural necessity for the continuation of a strong trend.
Main Thesis: Potential short-term declines should be viewed as opportunities for accumulation, not as trend reversals.
What Can Invalidate the Scenario: If BTC aggressively breaks below $87,668 and consolidates under it, the situation will require reassessment and identification of the next support levels.
Important: Always use risk management and do not forget about stop-losses. This analysis is based on technical patterns that may change under the influence of news and external factors.
