BTCUSD Order Flow - Sellers Retain The Upper Hand

BTCUSD on the 8h chart (session by session flows) remains in a bearish context as depicted by the OFA script - We can see the last push lower exceeding in velocity and magnitude the previous attempts to the upside... As the last post implies, when this type of bearish wave unfolds, it carries heightened risk of follow through.

This time it's even more relevant the potential follow through that may transpire as price would meet with the recent trend low circa 17.5k. A break and hold on a weekly basis sub this level is the pin in the coffin for a BTC that may see next exchange hands somewhere between 10-12k over the course of the next few months.

To negate this transition into a bear environment, there must be a counter cyclical move that starts creating a shift in order flow, which given the current strength in the USD, I don't foresee. The OFA script as usual will act as out north-star and clearly communicate that when that occurs.

Remember the two key main features of the OFA script:

Magnitude: A major clue that will help determine the health of a trend is the type of progress by the dominant side in control of the trend. We need to ask the following question: Are the new legs in the active buy-sell side campaign as identified by the script increasing or decreasing in magnitude?

Velocity: When it comes to the distance the price moves, the magnitude is only ½ the equation. The other ½ has to do with the velocity of the move or the speed. Was the new leg created after a fast and impulsive move? Or did price make a new low or high with the movement being sluggish, compressive and taking too long to form? A good rule of thumb is to count the number of candles it took to achieve a new leg.