If you look at the 1 hour charts for bitcoin and XRP, mixing smart money concepts with fibonacci retracement gives you a crystal clear view of where institutional money likes to step in. After a solid pump, price pulled back right into the discount zone. On the bitcoin chart, the order block formed right around the 70.50% and 78.60% fibo levels. The moment price tapped that gray box, buyers jumped straight in with strong rejection candles. The same exact setup played out on XRP's 1 hour chart, where reacting to the 78.60% level triggered a clean, high precision bounce.
To be safe before pulling the trigger, it is always better to wait for extra confirmation like a bullish engulfing candle or a solid pin bar at the zone. Pairing that with the stochastic oscillator and SMA 50 gives you even higher confidence. On the 4 hour chart, the stochastic was deeply oversold right as price hit the OTE zone, forming a clean bullish cross. But remember that higher time frames always rule the market. Even after that nice rally toward $65k - $66k, price faced heavy selling pressure and broke back down, right in line with the 4 hour Stochastic pointing sharply bearish again.
Bottom line, catching reversals with SMC and the 78.60% fibo level works great for quick profit target setups. However, market structure shifts on bigger time frames are a constant reminder to always lock in profits, stick to strict risk management, and avoid going crazy with leverage when the market decides to flip on you.
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⛔ Disclaimer: This article is strictly for informational and educational purposes only. It does not constitute financial advice, and no trading signals are provided.
Financial market trading including crypto, forex, and stocks involves high risks. While there is a potential to achieve substantial profits, there is an equal or even greater risk of experiencing severe losses, including the loss of your capital. Past market performance does not guarantee future results.
All investment decisions are your sole responsibility. Please ensure you conduct your own research (DYOR) before making any trades.
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