Bitcoin Market Auction Theory – Volume Levels & Market Rotation

Hello Traders,

Bitcoin’s price action is currently respecting key volume levels, aligning with market auction theory. This concept suggests that price tends to rotate between value area high (VAH) and value area low (VAL), using the point of control (POC) as a midpoint. With price recently rejecting the VAH, the probability of a move lower has increased.

Key Technical Points:

• Market Auction Theory: Price typically rotates between VAH and VAL, with the POC acting as a key pivot.
• Current Price Structure: The VAH at $88,200 has seen rejection, increasing the likelihood of a move toward the POC at $67,200.
• Volume Profile Insight: Declining volume suggests consolidation is nearing its end, with an expected volume spike driving the next major move.

If Bitcoin loses the POC at $67,200, it significantly increases the probability of a full rotation down to the VAL at $49,500, completing the auction cycle. However, a bounce from POC could provide short-term support before the next major move develops.

For now, Bitcoin is consolidating, but the volume profile suggests a breakout is imminent. Traders should monitor key levels closely, as an influx in volume will likely dictate the next major directional move.