BICOUSDT analysis (1H, 1D)I've done a NEIROETHUSDT analysis in the recent past,
and one thing I learned from it was that we should never overlook the volume .
We look at the BICOUSDT chart here and similarly we see a big volume in recent hours.
The red line represents the resistance line of the downtrend from 1D chart.
The downtrend has been continued for last 6 months ,
and we can see that this line has had a lot of price actions since this March - making it very important & historical.
And now, we see the price approaching the line again,
but this time it is exceptionally aggressive - the candle is tall, the volume is nothing like we've seen in past 2 months.
Going back to the 1H chart, we can identify the supply zone just before the aggressive climb takes place.
We can rely on this zone because it has shown numerous price actions in the past - whenever the price steadily declined down to the zone, it has shown reversal of trend.
The only time it did not respect the zone was this - a massive bearish candle delivered by the volume spike - almost 50 times higher than the previous one.
When the price moves aggressively like this, we cannot expect reversal to happen: this is why we always enter AFTER confirming the reversal.
The price is now being retested in 0.22 - 0.23 zone.
One strategy we might use here is good old 'liquidity grab' strategy.
The principle of this strategy is catching the false breakout of the liquidity grab line and enter short when we confirm reversal of the trend.
Momentum Oscillator will help us in confirming the reversal.
HOWEVER, the unusual volume spike in recent candles could make such approach risky.
Although it might be profitable temporarily, it is definitely not in long term. (At least we cannot expect it to be.)
Considering two factors - one, price is very close to the resistance line of the downtrend with high volume and two, BTC is on an uptrend as US election nears:
these could mean that BICO is ready to stop the 6-months downtrend and reverse into an uptrend.
When price is being this aggressive, it might not respect any zones, lines or levels.
BTC movements are also very unusual.
Back to BICO:
And just as it shows in its history, it doesn't mess around in an uptrend.
Stay tuned!
