1)Price Structure and Trend
Short term Trend: Currently Bearish.
The price is forming a pattern of Lower
Highs and Lower Lows.
Trendline: There is a descending
trendline (blue line) acting as dynamic
resistance. While BTC has seen a slight
recovery after hitting the support zone, it
has not yet broken above this trendline.
2)Volume Profile Levels (Value Areas)
The chart highlights several key levels
based on traded volume:
VAH (Value Area High - ~$95,300):
The upper boundary of the value area.
The price faced strong rejection here
previously.
POC (Point of Control - ~$92,500): The
level with the highest traded volume.
Currently, the POC acts as a major
resistance. Selling pressure is expected
to resurface if the price rallies back to
this zone.
VAL (Value Area Low - ~$90,000): The
lower boundary of the value area. The
price has dropped below this level,
flipping it from support into a potential
resistance zone.
3)Demand Zone
The price has shown a positive reaction
at the Demand Zone (the purple box at
the bottom, around $88,000 - $88,500).
The presence of long lower wicks: and
green "hammer like" candles indicates
that buyers are stepping in at this level.
Potential Scenarios
Scenario 1: Technical Recovery (Mildly
Bullish)
BTC needs to break above the
descending trendline and close a candle
above $90,000 (the VAL zone).
If successful, the next target would
be the POC ($92,500). However, this
is a "make or break" zone; without a
significant surge in buying volume, the
price is likely to reverse downward from
here.
Scenario 2: Continued Downtrend
(Bearish Continuation)
If this recovery fail to break $90,000 or
is rejected by the trendline, the price will
likely return to re-test the Demand Zone
($88,000).
If the $88,000 support fails to hold, the
downward momentum could extend
toward the $85,000 mark.
Key Takeaways:
Critical Pivot: Watch the price action
at the diagonal trendline. A strong 1h
candle close above this line would
be a positive short term signal.
Caution: Since the price is still trading
below both the POC and VAL, the
bears (sellers) are still in control. The
current upward movement is primarily a
technical bounce from an oversold area.
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