I think that the zone marked by the purple box is a safe place to buy for many reasons. The top is the first place to buy, expecting a bounce from there. If there is somehow more drop in price before a bounce from there that would be insane, but possible. Any horizontal resistance in the blue zone would be good to add onto a long if price drops more.
-It is at the 0.618 of the last downtrend which was a very important zone as outlined in previous charts.
-It is at the 0.50 of the last upward move.
-It is where there is a gap in horizontal volume, so sellers will be reluctant to go lower too quickly.
Funding on Binance is currently reset, meaning longs have to pay as much as shorts to borrow, so long trades are no longer over crowded. If price drops to the zone, there will probably be more late shorts jumping on the train, who would get liquidated/stopped on a bounce.
Not saying price will get there, but it looks like it might. And if it does, there is reason to believe a bounce will occur.
Overall, it will be very interesting to see what happens here!
-It is at the 0.618 of the last downtrend which was a very important zone as outlined in previous charts.
-It is at the 0.50 of the last upward move.
-It is where there is a gap in horizontal volume, so sellers will be reluctant to go lower too quickly.
Funding on Binance is currently reset, meaning longs have to pay as much as shorts to borrow, so long trades are no longer over crowded. If price drops to the zone, there will probably be more late shorts jumping on the train, who would get liquidated/stopped on a bounce.
Not saying price will get there, but it looks like it might. And if it does, there is reason to believe a bounce will occur.
Overall, it will be very interesting to see what happens here!