Chart: BTC/USD, Monthly Timeframe
Bias: Neutral to Bearish if key resistance holds.
Idea: This is a long-term analysis based on historical price action within a multi-year channel.
Summary (The Thesis):
This analysis looks at Bitcoin's price action on the monthly chart, contained within a large, ascending parallel channel that has defined bull and bear cycles for years. We are currently testing the upper boundary of this channel, a historical resistance zone.
My thesis is that the $110,000 - $115,000 zone represents a critical decision point for the entire market. A failure to decisively break above this level could initiate a significant, multi-month pullback to reset market sentiment and gather liquidity before the next major leg up.
The Macro Analysis (The "Why") :
The Ascending Channel: As you can see on the monthly chart, Bitcoin's price has respected this ascending channel since 2017. The upper line has consistently acted as a major distribution zone and cycle top (marked with red arrows), while the lower line has served as a generational buying opportunity (marked with green arrows). We are currently at the upper line.
Historical Resistance: History shows that the first test of this upper channel boundary is rarely successful. The price often requires a significant consolidation or a deep correction before it can muster the strength to break into a new price paradigm.
Market Mechanics & Liquidity: From a market mechanics perspective, a massive number of longs have entered the market since the move up from the $70k-$75k range. A "huge pullback" would serve to liquidate these late, over-leveraged positions, allowing market makers to absorb liquidity and build the necessary foundation for a sustainable break of the all-time high later on.
Bias: Neutral to Bearish if key resistance holds.
Idea: This is a long-term analysis based on historical price action within a multi-year channel.
Summary (The Thesis):
This analysis looks at Bitcoin's price action on the monthly chart, contained within a large, ascending parallel channel that has defined bull and bear cycles for years. We are currently testing the upper boundary of this channel, a historical resistance zone.
My thesis is that the $110,000 - $115,000 zone represents a critical decision point for the entire market. A failure to decisively break above this level could initiate a significant, multi-month pullback to reset market sentiment and gather liquidity before the next major leg up.
The Macro Analysis (The "Why") :
The Ascending Channel: As you can see on the monthly chart, Bitcoin's price has respected this ascending channel since 2017. The upper line has consistently acted as a major distribution zone and cycle top (marked with red arrows), while the lower line has served as a generational buying opportunity (marked with green arrows). We are currently at the upper line.
Historical Resistance: History shows that the first test of this upper channel boundary is rarely successful. The price often requires a significant consolidation or a deep correction before it can muster the strength to break into a new price paradigm.
Market Mechanics & Liquidity: From a market mechanics perspective, a massive number of longs have entered the market since the move up from the $70k-$75k range. A "huge pullback" would serve to liquidate these late, over-leveraged positions, allowing market makers to absorb liquidity and build the necessary foundation for a sustainable break of the all-time high later on.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.