Eye Of The Storm
Bison are one of the few herd animals who do not run away from a storm, but instead turn towards it, and run through it. Why? It is the fastest way to get through to the other-side.
G’day Folks,
Well, we finally back-filled that supply air-pocket between $70k and $80k, and it happened quickly.
It’s quite interesting how consistently these structures become obvious targets for markets, and then provide almost no support on the way through them.
For whatever reason, price range zones where very few coins have changed hands, and little historical trade volume occurred, tend to be sliced through very quickly on the way down.
Let’s invert that idea.
If supply air-pockets, like the one above provide little support on the way down, what happens when price returns to a relatively dense supply cluster?
Today’s piece continues our analysis of the prevailing drawdown, and what it means in the short term given we have now largely back-filled the air-pocket.