important weekly candle close tomorrow
two ranges you should have marked out going forward
• this weekly high / low
• high timeframe range highs / lows
considering that was the largest liquidation event of the year the lows set during this forced selling are indicative of areas that large spot buyers stepped in to stop the aggressive selling, "forced selling" meaning leveraged longs that had to market sell positions as they did not have enough collateral to remain open (5x longs get liquidated at -20%, 3x longs at -33% etc etc.) - because of this it usually is not a good idea to be shorting into the lows of these liquidation events immediately after because on the retest of these levels you will not have the same substantial amount of forced selling that caused price to go that low
the weekly highs are important because this was the last area where supply > demand and sellers were in control, for those who did not get to derisk ahead of the liquidation event, many will be attempting to breakeven / get out of positions
its also likely that we are contained in this range for awhile & breakouts in either direction should be taken as very strong reversal or continuation signals due to how much volume traded during this week, the chatter on CT of "we're so back / you sold the bottom / alt szn" will likely get louder as we approach prior weekly highs
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for the high timeframe ranges they are also important because they indicate shift in trend, outside of Bitcoin / Solana / Hyperliquid a lot of altcoins broke down from the price ranges that theyve been trading in for the past few months, indicating a shift in trend to the downside, your default assumption now should be that these alts will make a subsequent lower high following the most recent lower low, & you should force the market to prove you wrong before changing your bias back to bullish
for these HTF ranges the support levels that held for a long time now should be strong resistance & you should be looking to derisk into those levels - in contrast if these are aggressively reclaimed, it would be very bullish
personal opinion is that most of these take a few months to recover, am happy to be proven wrong, NFA DGL DYOR HEHAGW
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