BOOK OF MEME/Tether Market Overview (BOMEUSDT)

• BOOK OF MEME/Tether (BOMEUSDT) traded in a volatile 24-hour range of $0.000971–$0.001029, closing near session high.
• Price found strong resistance near $0.001029 and support at $0.000971, suggesting potential consolidation.
• RSI moved into overbought territory during midday, indicating potential exhaustion or reversal risk.
• Volatility and turnover spiked during Asian and European trading hours, signaling heightened interest.
• A bearish divergence in the late afternoon suggests caution ahead as the market digests key levels.

BOOK OF MEME/Tether (BOMEUSDT) opened at $0.00099 on 2025-11-01 12:00 ET and closed at $0.000981 by 12:00 ET the next day, reaching a high of $0.001029 and a low of $0.000971. Total trading volume stood at 476,708,120, with a notional turnover of $492,657. The pair exhibited a range-bound to mildly bearish bias, with a pronounced correction in the latter half of the session.

Structure and price action revealed a key resistance cluster around $0.001025–$0.001029, tested multiple times but failed to hold. A strong support area emerged near $0.000971–$0.000975, where the price found a floor after a sharp decline in the late afternoon. A bearish engulfing pattern formed around 14:15–16:30 ET, with closing prices failing to reclaim previous highs. A potential 61.8% Fibonacci retracement level aligned with the key support, reinforcing its significance.

Moving averages showed a bearish crossover on the 15-minute chart, with the 20SMA crossing below the 50SMA around 14:30 ET. The 50SMA on the daily chart remained above the 200SMA, suggesting a longer-term bullish bias, though the 100SMA acted as resistance during the session. The price tested these averages multiple times but ultimately closed below them, signaling a shift in sentiment.

MACD crossed below the signal line during the session, indicating weakening bullish momentum. RSI spiked above 70 midday and then dropped sharply toward 30 by the end of the session, pointing to overbought conditions earlier and a potential oversold scenario at close. Bollinger Bands reflected a period of volatility expansion in the early hours and contraction in the late afternoon, with prices touching the lower band before bouncing. This suggests a potential reversal or consolidation phase ahead.

Volume and turnover data showed a sharp increase in activity from 03:00–07:00 ET and again from 13:00–15:00 ET, with the latter coinciding with the formation of the bearish engulfing pattern and a sharp price drop. Notional turnover spiked to over $1.5M during the Asian trading hours, reinforcing the idea that the market was digesting key levels. However, volume during the late afternoon pullback was relatively low, suggesting a potential lack of conviction in the move.

Fibonacci retracement levels aligned well with key support and resistance levels, especially the 61.8% level near $0.000971, where the price found a floor. A 38.2% retracement at $0.000996 also acted as a pivot point in the mid-session. For the 15-minute chart, recent swings suggested a consolidation phase between $0.000985 and $0.001015, with the 50% level at $0.000999 showing mixed action.

Backtest Hypothesis
The bearish engulfing pattern observed in the late afternoon could serve as a viable entry trigger if applied systematically. A potential backtest strategy could involve entering short positions at the close of the engulfing candle, with a stop-loss placed just above the high of the pattern and a target aligned with the nearest Fibonacci support level. To ensure robustness, volume confirmation and RSI divergence could be added as filters. The strategy could be tested across the 2022-01-01 to 2025-11-02 period to assess its performance in various volatility and trend environments.