BTC/USDT Analysis – Consolidation After Sharp Sell-Off

Overview:

- Bitcoin has experienced significant volatility, with a sharp decline from recent highs near $103,000 followed by a partial recovery. Currently, the price is consolidating below the $98,000 resistance level, signaling indecision in the market.

Key Levels to Watch:

- Resistance:

- Immediate resistance at $98,000.
- A stronger supply zone is visible around $100,000.

- Support:

- Key support levels lie at $95,000 and $92,000, where buyers have shown strong interest during the recent dip.

Market Structure:

- Trend:

- Short-term: Bearish due to the sharp sell-off and rejection near resistance.
- Medium-term: Neutral to slightly bullish, as the higher lows from prior sessions remain intact.

- Candlestick Patterns:

- The long lower wicks during the dip indicate buyer absorption near $92,000–$95,000.
- Recent candles show consolidation, suggesting market indecision ahead of a potential breakout.

Potential Scenarios:

- Bullish Case:

- A breakout above $98,000 with strong volume could lead to a retest of $100,000, with potential upside toward $103,000.

- Bearish Case:

- Failure to reclaim $98,000 could result in a retest of $95,000 and $92,000. A breakdown below $92,000 might accelerate selling pressure, targeting $90,000 and lower levels.

Trading Strategy:

- For Long Positions:

- Entry: On a confirmed breakout above $98,000.
- Stop-Loss: Below $95,000.
- Targets: $100,000 and $103,000.

- For Short Positions:

- Entry: On rejection at $98,000 or $100,000.
- Stop-Loss: Above $100,000.
- Targets: $95,000, $92,000, and $90,000.

Conclusion:

- BTC/USDT is at a critical juncture. A decisive move beyond $98,000 or below $92,000 will likely define the next major trend. Traders should exercise caution and ensure proper risk management given the current volatility.
Chart PatternsTrend AnalysisWave Analysis

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