Bitcoin Faces Uncertainty: Pullback or range-Bound?
Bitcoin’s recent price dip has sparked debate. Is this a temporary pullback or the start of a range-bound market? The answer lies in the current market structure.
Bitcoin (BTC) soared from a $75,000 low, setting new all-time highs. However, the upward momentum has weakened. Traders are now questioning if the bull run is over. The market’s current state.
Here are the key points too watch:
- market Structure Breach: A new technical low has formed, breaking the trend of higher lows.
- Failed Auction at Highs: The price couldn’t hold above the previous range high, indicating exhaustion.
- Lower High Formation: A potential lower high may signal a deeper correction.
Traders should monitor the formation of a lower high.If it occurs, it could mean a more significant correction, possibly revisiting the $75,000 support zone. This would suggest Bitcoin has moved from a trending market into a defined range.
A bearish retest of the former range high, now acting as resistance, supports the idea of consolidation. Until Bitcoin convincingly reclaims this level, the risk of further downside remains high.
What to expect next? Unless Bitcoin reclaims the range high with strong volume, the structure favors a move lower. A confirmed lower high would validate the idea that BTC is now range-bound. Traders should be cautious near the upper boundary of this range, where rejection is more likely.
