If we look at the 1 hour bitcoin and XRP charts, combining smart money concepts with fibonacci retracement proves to be very effective for finding precise optimal Trade entry areas. On the $BTC chart, price pulled back after a strong upward move, where the order block area sat right between the 70.50% and 78.60% fibo accumulation levels. When price touched that gray box, a strong rejection happened immediately because smart money was defending their buy positions at a discount price. The exact same pattern played out on the 1 hour XRP chart, where the Order Block zone in the 70.50% to 78.60% Fibo range successfully triggered a clean price reversal.
To build extra confidence before entering the trade, the Stochastic oscillator and SMA 50 were used for additional momentum confirmation. On the 4 hour time frame, the stochastic was already in the oversold zone right when price entered the OTE area, forming a bullish cross that validated the buy signal. However, higher time frames always bring their own dynamics. After a strong rally toward the $65k - $66k range, both bitcoin and $XRP pulled back down and even broke below major fibo levels, aligned with the 4 hour stochastic turning sharply bearish again.
In conclusion, technical analysis based on SMC and the 78.60% fibonacci level is highly reliable for catching accurate reversal points to lock in quick profits. However, shifting structures on higher time frames serve as a crucial reminder that no matter how good your setup is, risk management and controlling leverage remain the ultimate keys to keeping your trading account safe when the market suddenly turns against you.
⛔Disclaimer - This analysis is for educational purposes and reflects personal opinion only, not financial advice. Always practice risk management and use stop losses (SL) according to your own risk tolerance.
Keep trading and stay profitable📊
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