BTCUSD DAILY CHART ANALYSIS The daily chart of Bitcoin shows that the dominant bearish trend structure was initiated after the peak near the 97, 000 region and changed the market into a sequence of lower highs and lower lows. The decrease became more intense when the price broke the 88, 000, 86, 000 support band level, going below it, thus structurally confirming the shift of the market from distribution to a more active downside momentum. Sales pressure was further increased by the continuation of bearish candles with expanding bodies that drove price aggressively to the 80, 000 level in the psychological territory that momentarily acted as a reaction point but couldnt produce a sustainable recovery. Failure to climb up 80, 000 decisively strengthened the prevailing bearish control, and there was a recognition that the zone was key overhead resistance. One of the main parts of the impulsive move was when a large bearish candle broke the intermediate support and extended the move down to the 63, 000, 60, 000 demand area. This was a structurally important candle since it increased volatility and thus confirmed the continuation within the descending channel indicated by the falling trendline. The lower boundary around 60, 000, 61, 500 has made a technical demand zone where the price reacted very well by printing a sharp bullish recovery candle straight after. That bullish candle signal, with a long lower wick and strong close back above 65, 000, indicated temporary exhaustion of selling pressure and started a new phase of corrections instead of an immediate trend reversal. After that reaction low, BTCUSD has been consolidating within a large corrective range, roughly between 63, 000 on the downside and 71, 500-72, 000 on the upside. 71, 500 is an area that almost perfectly aligns with the 61.8% retracement level of the previous significant down move and is also supported by a visible supply block, which makes it a technically very important resistance zone. Several attempts have been made to approach this zone, but each time the reaction has been hesitant, and the upper wick formations have appeared; it can be said that sellers are still active on rallies. The 69, 000, 70, 000 zone that lies around the 50% retracement has been used as a mid-range pivot point where price keeps stalling. A descending dotted trendline that is drawn from the previous swing high still limits the upside attempts, thus it keeps the broader bearish structure intact. Even while the price is on a corrective upward move, it has not yet made a higher high above the 72, 000 level, which is why the sequence of lower highs has been kept. On the other hand, the 65, 800-66, 000 area, which is roughly at the 23.6% retracement level, has provided a short-term support. Price fell below this level recently, and as a result, it briefly tested 63, 000 again thus confirming that level is the main structural support within the current range. The latest candle pattern features a bullish candle that rallied strongly, going off from the 64, 000-65, 000 area and closing at approximately 68, 500. This candle is of great importance as it is the one following a bearish candle that almost reached the bottom boundary of the range and slightly broke the minor support. The previous bearish candle was indicative of the continued pressure; however, its body was not big enough for a convincing break of the 63, 000 base. The fresh bullish candle more than covers the last downside attempt, thus showing that lower levels have been met with responsive buyers. On the other hand, its upper shadow indicates that there is still resistance near 69, 000-70, 000 that is preventing a strong breakout. In terms of the structure, the broader bias is for the continuation of the bigger downtrend as long as the price stays below 71, 500-72, 000. Closing on a daily basis above 72, 000 would end the sequence of lower highs and give way to 75, 000, while 80, 000 is the next prominent resistance spot. On the other hand, if the price is not held above 66, 000, the odds of 63, 000 being tested again become high. A clear daily close under 60, 000 would signal a break into the range of consolidation, and thus, the targets for the new lows would be around 57, 000 and, maybe, 52, 000 taking into account previous structural support. In a nutshell, Bitcoin is correcting in a consolidation phase inside a larger downtrend. The 63, 000 support and 72, 000 resistance levels mark the limits of the current fight. The most recent bullish candle increases the chances of a short-term bounce, but if the main resistance levels are not taken back, the general trend pattern will still be biased to the downside.
