price likely to trap bulls as downside objective remains unfinished

  • price shows a recovery as it attempts to produce a higher high above the August 25 swing high at $0.133.
  • This development could result in trapped bulls, especially if CRO heads down to collect liquidity below $0.0985.
  • A daily candlestick close above $0.133 with a higher low relative to $0.112 will invalidate the bearish thesis. price is on a downtrend with no signs of stopping just yet. However, the recent spike in bullish momentum must have given buyers a wrong impression of a recovery rally as the downside objectives are still uncollected. 

If bulls are not careful, they are likely to get squeezed in the coming days. price plans to undo recent gains price dropped 28% between August 14 and September 4, creating a swing low at $0.112. This downswing was followed by a quick recovery on September 4 with a 2.80% upswing over the next two days.

However, this move is temporary and likely to be reversed as market makers take CRO lower to collect the liquidity resting below equal lows formed at $0.1080 and $0.0985. Opening long positions after this development will have a higher chance of succeeding.

But for now, price is getting ready for a 10% to 19% downswing as bears seize control. 

CRO/USDT 1-day chart

CRO/USDT 1-day chart

While things are looking bullish for price due to the sudden burst in buying pressure, this rally should be avoided. The liquidity resting below $0.1080 and $0.0985 are likely to be collected before a massive run-up.

However, bulls could prematurely trigger a run-up if they can produce a daily candlestick close above $0.133. This move will invalidate the  bearish thesis, but additional confirmation will arrive if price can set up a higher low relative to September 4 swing low at $0.112.

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