Bitcoin has been trading within a rising channel formation since January 2024. The initial bullish expansion led to a breakout above this channel, where price traded for a while before ultimately breaking back below.
This rejection back into the channel is a bearish signal, increasing the probability of Bitcoin testing the lower boundary of this structure. Despite attempts to reclaim the channel, price action has continued to show weakness, with bearish retests leading to further downside. Additionally, Bitcoin has backtested the value area low resistance from the volume profile pull spanning from November 2024 to the present, reinforcing the ongoing bearish structure.
Currently, Bitcoin is displaying consecutive lower highs and lower lows, confirming the bearish trend on the higher time frame. If the value area low of this range is not reclaimed, the probability of a full rotation toward range low support at $65,000 increases significantly. This area represents a strong buy opportunity for traders looking for a high-probability long setup.
Key Takeaways:
- Bitcoin is trading within a high time frame range, with bearish structure prevailing.
- A breakdown toward $65,000 is likely if value area low resistance is not reclaimed.
- Swing traders should wait for an optimal entry at the range boundaries for better risk-to-
reward (RR).
From a technical perspective, Bitcoin is currently in the middle of its trading range, meaning day trading opportunities exist for those who can execute precision entries on lower time frames. However, for swing traders, the logical approach is to wait for a clearer risk-to-reward (RR) setup—either at the range high for shorts or the range low for longs.
The $65,000 level remains a key area to watch, as testing this support is likely to lead to a strong bounce, offering a better swing long opportunity. Given the current market structure, patience is key in positioning for the next major move.
Hope this analysis helps.
This rejection back into the channel is a bearish signal, increasing the probability of Bitcoin testing the lower boundary of this structure. Despite attempts to reclaim the channel, price action has continued to show weakness, with bearish retests leading to further downside. Additionally, Bitcoin has backtested the value area low resistance from the volume profile pull spanning from November 2024 to the present, reinforcing the ongoing bearish structure.
Currently, Bitcoin is displaying consecutive lower highs and lower lows, confirming the bearish trend on the higher time frame. If the value area low of this range is not reclaimed, the probability of a full rotation toward range low support at $65,000 increases significantly. This area represents a strong buy opportunity for traders looking for a high-probability long setup.
Key Takeaways:
- Bitcoin is trading within a high time frame range, with bearish structure prevailing.
- A breakdown toward $65,000 is likely if value area low resistance is not reclaimed.
- Swing traders should wait for an optimal entry at the range boundaries for better risk-to-
reward (RR).
From a technical perspective, Bitcoin is currently in the middle of its trading range, meaning day trading opportunities exist for those who can execute precision entries on lower time frames. However, for swing traders, the logical approach is to wait for a clearer risk-to-reward (RR) setup—either at the range high for shorts or the range low for longs.
The $65,000 level remains a key area to watch, as testing this support is likely to lead to a strong bounce, offering a better swing long opportunity. Given the current market structure, patience is key in positioning for the next major move.
Hope this analysis helps.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Join our free telegram for market updates: t.me/chartdoctorsanconsultants
Trade here with the best exchange: blofin.com/invite/alchemisttrader
Trade here with the best exchange: blofin.com/invite/alchemisttrader
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.