World-leading cryptocurrency Bitcoin (BTC) is forming bullish structures when looking at the daily time frame. After breaking the higher high at $25,300, the price began to enter into correction mode which immediately strived to fill the closest imbalance zone.
During this process, we could observe the formation of the so-called equal lows on the daily/4-hour time frame, serving to attract the attention of traders which seek to buy early at the support level. However, the price did not fulfil the daily imbalance zone, so there remained some potential for further correction.
On Monday the 5th of May, this assumption came to fruition and the price fell below these equal lows. The fall stopped at the 0.5 Fibonacci level, which corresponds to the point of the previous structure (higher high.)
The next day, BTC enjoyed an even stronger rise, and the price was able to close above the highest level reached the previous day - forming a so-called engulfing candlestick formation. Following the abovementioned equal lows, this was due to the need to take liquidity.
BTC/USD - Daily Time Frame
4-hour time frame
The multi time frame analysis is inscrutable. In the four-hour time frame, the structures remain quite bearish, so the price needs to close above the lower high before the next potential attractive purchase opportunity. Along with the situation on the daily time frame, this would present a great buying opportunity.
BTC/USD - 4 Hour Time Frame
If this transformation to a bullish structure fails to form, it would indicate the potential for a deeper correction on the daily time frame.