cryptonewsland.com
- $SEI is testing a key daily demand zone, offering potential for a short-term scalp long trade if support holds.
- The $SEI/$BTC pairing shows confluence, suggesting potential upside if Bitcoin holds its key support.
- A break below the demand zone could trigger a short position, signaling a significant downward move for $SEI.
$SEI is a trading pair that traders are focused on as it approaches a vital daily demand level. Today’s bar has prompted a potential scalp long trade with the focus on the daily supply zone above. Though, this arrangement depends on the $BTC’s performance, and $BTC also wades on a critical technical level at the same time. If Bitcoin is to hold and rebound, it should afford $SEI the bounce it needs to continue its upward trajectory.
These bids were on $SEI btw.
Testing daily demand here and looking to play a scalp long to daily supply above.
This only works if $BTC holds up here and bounces as well of course but we have some nice confluence on the $SEI/$BTC pairing that supports this long if it does.
Will… https://t.co/Z1UbGbYxab pic.twitter.com/H17TAXrunp— CrediBULL Crypto (@CredibleCrypto) October 23, 2024
The daily demand zone is another economic level that is currently being piloted by $SEI and is a level that has traders searching frantically for buyers. A demand zone identifies a level with high demand interest which may cause the price to rise as a result of high demand.
Quite a number of traders are waiting for this zone to supply a scalp long trade intending to profit from the near-term movement to the daily offer zone. Therefore the strategy revolves on price action within this zone, a price above this zone indicates that there may be upward movement.
Linking with the $SEI/$BTC Pairing
This trade setup has been largely driven by the convergence that is witnessed in the $SEI/$BTC pair. It is when different technical factors signal the same direction, so a trader can be more confident with his or her assessment. Nevertheless, the current chart setup has something to help the $SEI/$BTC bulls: there are grounds for a long trade here. Still, much depends on Bitcoin’s position in the coming days because it defines the moods on the market to a considerable degree.
That is why in case bitcoin is unable to maintain its key support at the present levels and $SEI goes further down from the demand zone, traders have the option to go short. A break below the daily demand zone would mean an even bigger plunge for $SEI and traders would be expecting a bigger selloff.