Bitcoin price on the one-hour chart set a swing high at $42,208 and broke this structure only to set a higher high at $42,988.
After this market structure break or MSB, Bitcoin price crashed suddenly and flipped the said demand zone into a bearish breaker.
Hence, a short-term play would be to enter a short position at $40,808 with a stop loss above $41,465.
The trend for Bitcoin price since 22 January has been a sell-side liquidity grab below a previously formed low to wipe out knife-catchers and early longers.
A similar setup was observed on 3 and 24 February and most recently on 18 April.
While the six-hour chart reveals a good opportunity to position yourself, the 30-day Market Value to Realized Value model further supports this trend reversal.
Santiment’s research has shown that a local bottom is often formed around -10% and indicates that short-term holders are at a loss.
As seen in the chart below, the 30-day MVRV for BTC is inside the local bottom zone that extends from -5% to -10%.
With a Master’s degree focused on Mass Communication, Manisha is good at multitasking with an eye for detail.
Disclaimer: AMBCrypto’s content is meant to be informational in nature and should not be interpreted as investment advice.