Technical analysis shows that in doing so, it left behind an unresolved imperfection, which is a price imbalance that markets have a well-documented tendency to revisit.
The Weekend Rally Left Behind A DebtThe left shoulder and the head have already formed, and Bitcoin is now in the process of completing the right shoulder. The analyst identified a rejection zone between $76,800 and $77,400, which is shown on the chart below in red, as the area where that right shoulder is most likely to top out.
Where Does Bitcoin Go From Here? According to Minga, a rejection at the $76,800 to $77,400 red box must be followed by a break below that monthly high on the subsequent revisit. Should the pattern play out as the analyst projected, the chart points toward two notable downside reference points. The first reference point is the equal low level around $70,450, which is labeled on the chart above as a liquidity target.
Failure to break below the previous monthly high at $76,053 would invalidate the bearish scenario and give us another push toward the highs to take out the Monthly FVG above $79,000.
The second reference point is an untapped monthly imbalance of $79,388, which represents the opposing scenario. If Bitcoin instead breaks above $78,332 and acceptance is established above that level, the monthly fair value gap becomes the next logical target to the upside.
