1INCH Remains Bullish During Market Correction

While the cryptocurrency sector generally exhibits a bearish trend, some currencies are defying the correction and showing bullish indicators.

One such currency is 1INCH. Whether you are looking to enhance your portfolio with new cryptocurrencies or are a short-term trader, read on!

Daily time frame analysis

1INCHUSD - 1 Day Time Frame

The price of 1INCH has remained above the classic support zone for an extended period, prompting retail traders to buy early and place stop loss orders below this zone.

In such scenarios, an initial spike of External Sell-Side Liquidity (ESSL) is essential due to order matching, where the Stop Loss of a buy order acts as a Sell Stop, thus serving as a counterparty for commercial companies.

For any consistent trader, a full-fledged entry setup must consist of well-defined criteria. Building on the initial parameter of the liquidity spike, we seek a clearly demonstrable change in market price flow. In the long term, the simplest and most effective indicators are the Order Block and Inversion Fair Value Gap (IFVG).

No impulsive market move starts without their formation, making them the strongest support zones.

Additionally, having a precise target for why the price should rise or fall is crucial. Typically, the main reasons are to spike the opposite liquidity from the initial spike and to rebalance Fair Value Gaps, such as SIBI (Sell-Side Imbalance Buy-Side Inefficiency) or BISI (Buy-Side Imbalance Sell-Side Inefficiency).

When to buy 1INCH?

1inch has met all the criteria, making it possible to enter buy positions with the objective of successive selection of Internal and External Buy-Side Liquidity (I&EBSL) and a protective SL order below the low that preceded the formation of the IFVG.

On the chart, this support zone is highlighted in orange.

Fair Value Gap explained

If you are unfamiliar with the Inversion Fair Value Gap (IFVG) and its relevance, the following explanation is for you.

BTCUSD - 4 Hour Time Frame

The attached chart of Bitcoin, which mirrors the current situation on 1inch, shows the price taking out the initial SSL and subsequently closing above the Fair Value Gap (FVG), specifically the SIBI.

From that point, the price viewed this zone as strong support (IFVG), testing it multiple times before the bullish impulsive move, allowing commercial companies to buy.