BTC clean Smart Money Concept and Elliot Wave confluence
BTC has made an EQH and EQL at 17k and 16.4k which creates a liquidity zones as shown in picture.
1. A retail trader will either go short at 17k or long after breaking 17k. However, if you look closely, the price has created a supply zone at 17300. A break out of 17k might be a false break out.
2. After it comes back at 16.4k and retail traders will either go long at 16.4 or go short after the break out of 16.4 level. However, below that level, there is a demand zone + fibo 78.6 which can also make the break out at 16.4 a false breakout.
To support the above statements, we can also use Elliot wave theory to explain the scenario of this situation.
1. A retail trader will either go short at 17k or long after breaking 17k. However, if you look closely, the price has created a supply zone at 17300. A break out of 17k might be a false break out.
2. After it comes back at 16.4k and retail traders will either go long at 16.4 or go short after the break out of 16.4 level. However, below that level, there is a demand zone + fibo 78.6 which can also make the break out at 16.4 a false breakout.
To support the above statements, we can also use Elliot wave theory to explain the scenario of this situation.