SEI Approaches Critical Demand Zone: Will Bitcoin Hold the Key to the Next Move?
- 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.
