BITCOIN TESTING $87K - FALSE OR TRUE BREAKDOWN?
Symbol - BTCUSD
CMP 87100
BTCUSD has entered a risk zone, exhibiting a breakdown of the key support level. The market's attention is now on the bulls and their ability to maintain their defense. On the daily and weekly timeframes, the price is in a phase of global consolidation following a period of significant upward movement. The focus remains on the $90-91K range, a strong support area that aligns with the broader trend. Currently, a breakdown of support appears to be unfolding.
On the local timeframes (H1 - H4), the price is testing the support of the local channel, as well as the risk zone at 87,000. If the bulls are able to sustain their defense above 86,400 level, Bitcoin could potentially strengthen. In this scenario, the primary target would be $91-92K
Key support levels: 86,400, 85,530
Key resistance levels: 89,400, 91,600
Historically, the most significant price movements tend to occur after a false breakdown. However, the critical factor here is whether the breakout is genuine or false. In this case, confirmation is required — specifically, price consolidation above the key zones and levels.
Regarding my previous BTCUSD analysis, I had projected a decline to the 90K risk zone while Bitcoin was trading around $96-97K at that time. After some consolidation, the analysis proved accurate as Bitcoin dropped to the 90K range.
I believe this recent sell-off has disrupted the previous bullish structure, and a bearish structure is now beginning to take shape. I expect a retracement to the $91-92K range before the downtrend continues.
CMP 87100
BTCUSD has entered a risk zone, exhibiting a breakdown of the key support level. The market's attention is now on the bulls and their ability to maintain their defense. On the daily and weekly timeframes, the price is in a phase of global consolidation following a period of significant upward movement. The focus remains on the $90-91K range, a strong support area that aligns with the broader trend. Currently, a breakdown of support appears to be unfolding.
On the local timeframes (H1 - H4), the price is testing the support of the local channel, as well as the risk zone at 87,000. If the bulls are able to sustain their defense above 86,400 level, Bitcoin could potentially strengthen. In this scenario, the primary target would be $91-92K
Key support levels: 86,400, 85,530
Key resistance levels: 89,400, 91,600
Historically, the most significant price movements tend to occur after a false breakdown. However, the critical factor here is whether the breakout is genuine or false. In this case, confirmation is required — specifically, price consolidation above the key zones and levels.
Regarding my previous BTCUSD analysis, I had projected a decline to the 90K risk zone while Bitcoin was trading around $96-97K at that time. After some consolidation, the analysis proved accurate as Bitcoin dropped to the 90K range.
I believe this recent sell-off has disrupted the previous bullish structure, and a bearish structure is now beginning to take shape. I expect a retracement to the $91-92K range before the downtrend continues.
Trade closed: target reached
Bitcoin touched 93K, made a wick & then fell back to 89K.
Due to the chart being highly zoomed out, the exact candle may not be visible. However, you can verify this movement yourself by reviewing the 15-minute or 30-minute time frames.
The target has been successfully achieved, and the trade plan executed flawlessly as anticipated, resulting in a gain of +6,000 points within just 5 hours.
Note
CMP 82300
BTCUSD - Excellent market realization. When the price was trading around 87,000, I anticipated a bounce to 92000 level, followed by a decline from the resistance zone (which had previously been a support zone), ultimately expecting the price to reach the 80000 zone.
Result: A +6000 points move from 87000, followed by a -10000 points move from 92000 level.
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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.