Avalanche (AVAX): The smart contracts platform with "infinite scalability"

We've dipped into the BISI, where price resides atm multiple times already, which created relatively equal lows (SSL), meaning there's sellside liquidity or sellstops resting below those lows. The Stops got taken already but the FVG (BISI) is still active since it's been run multiple times and always respected the 50% level real good. 

The FVG (BISI) above is also of importance. As you can see, the FVG was used to create a run to liquidity resting above it. I'll pay less attention to this FVG now, as I would like to see a run below the SSL mentioned in the paragraph before. But keep in mind that a run into the most recent FVG is still possible, while the stops above the most recent high (created on 23. April 2024) and then dip beneath the SSL outlined on 23. January 2024.

An optimal scenario is a run below SSL, quickly bouncing back and raiding through the FVGs and above the 2024 high, continuing the "Bitcoin-halving-Altcoin-run". Keep in mind though that this is an optimal scenario I'm speaking about, I'll be updating this idea when I see some significant move changing my bias. 

Also of importance is that just because a ticker runs to, and slightly above or below a level, which would be regarded Stops (or in Retail Trading language: Double Bottoms/Double Tops or Support and Resistance level), it does not mean price is going to make a turn every time. That's why we're always waiting for confirmation that price will make a move in the other direction. 

Most of the time we'll determine that by going into lower timeframes using every available tool in our technical-analysis-toolbox. For me personally, I always want to see a quick move in the other direction. Very often we see price returning after a quick run in the other direction, which allows us to get into the trade using FVGs, Intra-Patterns or other confirming formations. 

You'll also see the FVG at around $20 marked on the chart above. This is an unlikely but still possible sellside target which would be of interest in case we don't see a quick bounce below the SSL at $27 which is the more likely scenario imo (depending on Bitcoins movement).

Fibonacci-Levels

If we now take a look through "Fibonaccis eyes" we'll see that the run to the 2024 high was pretty much the 1.1618-level of the move down before. I extended the Fib-Retracement so you can better see what I'm referring to. The turquoise lines are meant to visualize the Zig-Zag movement used to draw the Fibonacci Retracement. 

The reason the Fibonacci-Level is importance is that often price returns to the 0.13 Level of that move, which is what we saw recently to our FVG created on 08. December 2023. 

4h Timeframe

Now: Going down one timeframe offers us a new perspective. Which is that we don't necessarily have to move up to the daily FVG to move further to the downside because there's a pretty 4h FVG. Yes it's also on the Daily but very small and going down from higher timeframes, FVGs of that size don't really leap to the eye, and you likely concentrate on bigger patterns. This is why multi timeframe analysis is so important. 

Also, there's a noticeably long wick on 13. April 2024 (marked in turquoise). When there's a wick that striking I also count that as a gap as there are orders all over the place that haven't been triggered. So what I'm doing is marking the 50% level on my charts and use it in combination with other techniques to place a trade. 

In this case, we do have SSL resting below the recent low, which means we could couple our two formations to enter a long position. 

Conclusion

That being said, I don't enter trades in the crypto market based solely on an Altcoins chart. Bitcoins influence is way too big. Similarly, in Forex where it's a good idea to keep an eye on the dollar index when trading Dollar pairs like the EURUSD, EURGBP, NZDUSD etc. Thanks to Alexander Korn for that idea. 

Thanks to Michael J Huddleston and everyone who helped me on the way :)