Below is a high-level technical analysis of the chart you provided (labelled “FARTCOIN / TetherUS Perpetual Contract — 4H, Binance”), based on what is visible in the screenshot and referencing common Smart Money Concepts (SMC) and price action principles. Note: this analysis is for educational purposes only and does not constitute financial advice.
1. Market Structure Overview
Previous Uptrend and Sharp Decline:
From the chart, FARTCOIN appears to have experienced a sharp rally sometime in mid-to-late January or early February (potentially reaching well above 1.50 to around 2.00+). After that, price dropped dramatically, eventually bottoming out in the 0.20–0.30 region.
Flattening/Consolidation:
Following the steep decline, price went into a consolidation range around 0.20–0.30. This range can often precede either an accumulation phase or a continuation to the downside. In SMC language, it could represent a zone in which institutional players (Smart Money) are accumulating if support levels hold firmly.
Recent Shift in Structure (CHoCH / BOS labels):
The chart shows a Change of Character (CHoCH) in the vicinity of 0.40–0.50, followed by a Break of Structure (BOS) around the 0.60–0.70 region. These labels typically signal that price has made a higher high (HH) after a higher low (HL) relative to prior swing points, suggesting a possible shift from bearish-to-bullish market structure on the 4H timeframe.
2. Key SMC Concepts on the Chart
BOS (Break of Structure)
A BOS is often noted when price breaks above a key swing high or below a key swing low. On your chart, the first big BOS after the downtrend likely signals that bullish momentum is picking up.
The second BOS (if drawn on the chart) would confirm continued bullish structure if FARTCOIN climbs above another important swing high.
CHoCH (Change of Character)
A CHoCH is commonly used to mark the initial sign that the dominant trend might be reversing. On your chart, the CHoCH around 0.40–0.50 indicates that price began making higher lows and higher highs, breaking the prior bearish sequence.
Demand Zones & Liquidity Areas
The blue zones on your chart (at or below 0.40, and perhaps one near 0.50–0.60) are likely demand zones (areas where institutional orders could be resting). Price may revisit these areas if there is a pullback before continuing its uptrend.
Look for reactions when price returns to these zones: a strong bounce can confirm bullish demand still holds.
Premium/Discount Concept
Under SMC, you often divide a swing (the total price move from a major low to a major high) into “premium” (top half) and “discount” (bottom half) zones. Many traders prefer to enter positions in the “discount” zone during an uptrend to aim for better risk-to-reward. Conversely, if price is in a “premium” zone and showing signs of weakness, it may be time to consider partial profit-taking or waiting for lower entries.
3. Notable Support and Resistance Levels
Immediate Support:
Around 0.40–0.50 (Demand zone / CHoCH area).
Any close below 0.40 again could cast doubt on the new bullish structure, so this is a critical region to watch.
Near-Term Resistance:
Around 0.80–1.00, based on prior swing highs. The chart also seems to highlight the 1.00 psychological level as an upside target.
Beyond that, if price pushes above the 1.00–1.30 region (the upper resistance shown in some SMC markings), you could see attempts to fill “inefficient” price action or to revisit previous supply zones near the February highs (1.50–2.00+).
4. Potential Price Scenarios
Bullish Continuation:
Price consolidates briefly near the 0.70–0.80 zone, then breaks higher, reaching 1.00+ in a continuation of the bullish structure.
The bullish scenario is supported by the recent CHoCH and BOS. If volume and momentum remain strong, a move up to retest higher-timeframe supply zones could be in play.
Pullback, Then Bounce:
Price corrects from the current level back down into the noted demand zones (~0.40–0.60).
If strong buyers step in and defend support, this could offer a “discount” entry region for swing trades, and price may then continue its uptrend to challenge 1.00+.
Deeper Reversal:
Price loses support around 0.40, indicating that the “change of character” was just a temporary rally.
A drop below 0.30–0.40 could signal a full breakdown and a possible retest of the previous lows, negating the bullish thesis.
5. Additional Considerations
Volume & Liquidity:
Watch trading volume and liquidity closely, especially on pullbacks. SMC often emphasizes volume spikes at key supply/demand zones to confirm if Smart Money is actually stepping in.
Higher Timeframe Analysis:
Always check 1D or 1W charts to see if this 4H bullish structure aligns with a higher timeframe uptrend or if it’s merely a corrective move in an otherwise larger downtrend.
News & Fundamentals:
FARTCOIN’s fundamentals and overall market sentiment (e.g., Bitcoin’s general trend, altcoin hype cycles, or any project-specific news) can heavily influence price. Technical signals are more reliable when fundamentals do not contradict them.
Risk Management:
If long, decide where your invalidation point is (e.g., a close below 0.40).
Consider partial profit taking at key resistance levels or major supply zones.
Keep position sizing in check, especially since small-cap tokens can be extremely volatile.
Summary
From the SMC labels (CHoCH, BOS) on your 4H chart, FARTCOIN appears to have transitioned from a downtrend into an early-stage uptrend or at least a significant relief rally. The confluence of (a) higher highs and higher lows on the 4H timeframe and (b) support forming around 0.40–0.50 suggests that bullish momentum could continue toward 1.00 and higher, provided the market structure remains intact and trading volume supports the move.
As always, be mindful of broader market conditions, watch out for any breakdown below key support zones, and apply sound risk management practices
1. Market Structure Overview
Previous Uptrend and Sharp Decline:
From the chart, FARTCOIN appears to have experienced a sharp rally sometime in mid-to-late January or early February (potentially reaching well above 1.50 to around 2.00+). After that, price dropped dramatically, eventually bottoming out in the 0.20–0.30 region.
Flattening/Consolidation:
Following the steep decline, price went into a consolidation range around 0.20–0.30. This range can often precede either an accumulation phase or a continuation to the downside. In SMC language, it could represent a zone in which institutional players (Smart Money) are accumulating if support levels hold firmly.
Recent Shift in Structure (CHoCH / BOS labels):
The chart shows a Change of Character (CHoCH) in the vicinity of 0.40–0.50, followed by a Break of Structure (BOS) around the 0.60–0.70 region. These labels typically signal that price has made a higher high (HH) after a higher low (HL) relative to prior swing points, suggesting a possible shift from bearish-to-bullish market structure on the 4H timeframe.
2. Key SMC Concepts on the Chart
BOS (Break of Structure)
A BOS is often noted when price breaks above a key swing high or below a key swing low. On your chart, the first big BOS after the downtrend likely signals that bullish momentum is picking up.
The second BOS (if drawn on the chart) would confirm continued bullish structure if FARTCOIN climbs above another important swing high.
CHoCH (Change of Character)
A CHoCH is commonly used to mark the initial sign that the dominant trend might be reversing. On your chart, the CHoCH around 0.40–0.50 indicates that price began making higher lows and higher highs, breaking the prior bearish sequence.
Demand Zones & Liquidity Areas
The blue zones on your chart (at or below 0.40, and perhaps one near 0.50–0.60) are likely demand zones (areas where institutional orders could be resting). Price may revisit these areas if there is a pullback before continuing its uptrend.
Look for reactions when price returns to these zones: a strong bounce can confirm bullish demand still holds.
Premium/Discount Concept
Under SMC, you often divide a swing (the total price move from a major low to a major high) into “premium” (top half) and “discount” (bottom half) zones. Many traders prefer to enter positions in the “discount” zone during an uptrend to aim for better risk-to-reward. Conversely, if price is in a “premium” zone and showing signs of weakness, it may be time to consider partial profit-taking or waiting for lower entries.
3. Notable Support and Resistance Levels
Immediate Support:
Around 0.40–0.50 (Demand zone / CHoCH area).
Any close below 0.40 again could cast doubt on the new bullish structure, so this is a critical region to watch.
Near-Term Resistance:
Around 0.80–1.00, based on prior swing highs. The chart also seems to highlight the 1.00 psychological level as an upside target.
Beyond that, if price pushes above the 1.00–1.30 region (the upper resistance shown in some SMC markings), you could see attempts to fill “inefficient” price action or to revisit previous supply zones near the February highs (1.50–2.00+).
4. Potential Price Scenarios
Bullish Continuation:
Price consolidates briefly near the 0.70–0.80 zone, then breaks higher, reaching 1.00+ in a continuation of the bullish structure.
The bullish scenario is supported by the recent CHoCH and BOS. If volume and momentum remain strong, a move up to retest higher-timeframe supply zones could be in play.
Pullback, Then Bounce:
Price corrects from the current level back down into the noted demand zones (~0.40–0.60).
If strong buyers step in and defend support, this could offer a “discount” entry region for swing trades, and price may then continue its uptrend to challenge 1.00+.
Deeper Reversal:
Price loses support around 0.40, indicating that the “change of character” was just a temporary rally.
A drop below 0.30–0.40 could signal a full breakdown and a possible retest of the previous lows, negating the bullish thesis.
5. Additional Considerations
Volume & Liquidity:
Watch trading volume and liquidity closely, especially on pullbacks. SMC often emphasizes volume spikes at key supply/demand zones to confirm if Smart Money is actually stepping in.
Higher Timeframe Analysis:
Always check 1D or 1W charts to see if this 4H bullish structure aligns with a higher timeframe uptrend or if it’s merely a corrective move in an otherwise larger downtrend.
News & Fundamentals:
FARTCOIN’s fundamentals and overall market sentiment (e.g., Bitcoin’s general trend, altcoin hype cycles, or any project-specific news) can heavily influence price. Technical signals are more reliable when fundamentals do not contradict them.
Risk Management:
If long, decide where your invalidation point is (e.g., a close below 0.40).
Consider partial profit taking at key resistance levels or major supply zones.
Keep position sizing in check, especially since small-cap tokens can be extremely volatile.
Summary
From the SMC labels (CHoCH, BOS) on your 4H chart, FARTCOIN appears to have transitioned from a downtrend into an early-stage uptrend or at least a significant relief rally. The confluence of (a) higher highs and higher lows on the 4H timeframe and (b) support forming around 0.40–0.50 suggests that bullish momentum could continue toward 1.00 and higher, provided the market structure remains intact and trading volume supports the move.
As always, be mindful of broader market conditions, watch out for any breakdown below key support zones, and apply sound risk management practices
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.