Market Overview: Internet Computer/Tether (ICPUSDT)

• ICPUSDT declined from 3.16 to 2.86, forming a bearish divergence and a sharp sell-off in late ET hours.
• Volatility expanded significantly as Bollinger Bands widened, with price closing near the lower band.
• RSI dipped below 30 into oversold territory, while MACD turned negative, confirming bearish momentum.
• Volume surged during the selloff, with over 119k turnover in the 15:15–15:30 ET block as price dropped past 2.88.
• No clear reversal patterns emerged, but Fibonacci 61.8% support at ~2.89 holds immediate significance.

The ICPUSDT pair opened at $3.074 on 2025-10-29 at 12:00 ET, reached a high of $3.166, and hit a 24-hour low of $2.851 before closing at $2.862 on 2025-10-30 at 12:00 ET. Total traded volume was 1,407,967.36 ICP, and notional turnover amounted to $3,721,381.23 during the 24-hour window. The market exhibited a pronounced bearish trend, with price dropping nearly 9% in the final hours of the trading window amid heightened volatility and volume spikes.

Over the past 24 hours, ICPUSDT experienced a sharp decline following a short-lived bullish push above $3.14. The 20-period and 50-period moving averages both turned negative, with the 50SMA currently at $3.08, acting as a dynamic resistance. Key support levels emerged around $2.89–$2.90, aligning with the 61.8% Fibonacci retracement of the recent $3.07–$3.166 move. Resistance remains at $3.06–$3.10, where several bearish engulfing setups and failed attempts to rally were observed in the late ET data.

The Relative Strength Index (RSI) fell to below 30 by 07:00–09:00 ET, indicating oversold conditions, though without a reversal in momentum. MACD lines turned negative mid-day and remained bearish, with no clear signs of short-term reversal. Bollinger Bands widened significantly during the sell-off, and ICPUSDT closed near the lower band, suggesting a continuation of the downward trend. Volatility is elevated, with a sharp divergence between price and turnover in the 15:00–16:00 ET period, where turnover spiked on the decline but failed to trigger a rebound.

The bearish divergence between volume and price, particularly in the 15:15–15:30 ET window, suggests distribution rather than a temporary pullback. Fibonacci 61.8% support at ~$2.89 is the next critical level to watch, as a break below this could target the $2.85–$2.80 range. While RSI suggests oversold conditions, the lack of a reversal pattern and continued bearish momentum in the MACD and moving averages imply that the trend may persist for the next 24 hours. Traders should remain cautious of further downside unless a bullish reversal forms near key support levels.

Backtest Hypothesis
The data request for historical “Bearish Engulfing” candlestick patterns could not be retrieved due to an interface error. To proceed, one of the following options must be pursued:
1. Retry with adjusted query — Alternative pattern names or symbol formats (e.g., “bearish_engulfing,” “ICP/USDT”) will be tested automatically.
2. Derive pattern from raw data — Using the daily OHLC prices of ICPUSDT, the Bearish Engulfing pattern can be computed manually for backtesting.
3. Manual input of pattern dates — Users may provide the approximate dates for Bearish Engulfing occurrences to proceed with the 3-day short strategy evaluation.

A successful pattern detection will allow for a backtest of a short-term sell strategy based on the bearish engulfing pattern, using ICPUSDT as the asset. The strategy would aim to short on confirmation of the pattern and close the position 3 days later. This method aligns with the observed bearish momentum in the current ICPUSDT chart, particularly in the late ET sell-off where multiple engulfing-like formations occurred.