Bitcoin has returned to the top of its current trading range, putting the market at a crucial decision point. While a breakout could open the door to further upside potential, analysts warn that the lack of upside could lead to a sharp rejection. If selling pressure increases at these highs, Bitcoin could return to the key support level around $62,800.
A return to the top of its trading range
Bitcoin is moving towards its all-time high, prompting analyst Lennaert Snyder to issue a cautious stance update with regard to current market conditions. Snyder emphasizes his trading strategy: avoiding long positions at the top of a range. Because the most logical and likely buying opportunities are at the lowest levels, entering a long position at these higher levels carries an unfavorable risk-reward ratio.
Rather than chasing upside momentum, the current technical situation suggests that a shorting scenario is much more attractive. Snyder is currently tracking three potential paths for today’s price action, with each focusing on how Bitcoin responds to top-down resistance.
If Bitcoin starts to decline from its current position and loses the critical market structure level of $69,383, this would signal a shift in momentum. In this case, Snyder plans to take a short position, targeting the “weak lows” around $65,280.
Furthermore, buy-side liquidity is still above current prices at $71,200 and $72,846. If Bitcoin moves higher to sweep these pools and trap breakout buyers, Snyder will wait for a bearish Market Structure Break (MSB) to confirm the move. This confirmation would then serve as a starting point to short the asset back to the same target of $65,280.
Bitcoin Reaches Exact Range High of $70,500
In a recent technical updateCrypto analyst Zord highlighted that Bitcoin has accurately tapped the Range High at around $70,500, a level previously identified in his latest market analysis. This precise touch confirms the current range limits, placing the asset at a critical inflection point where the next major change in direction will likely be decided.
The potential for a bullish expansion remains on the table, with Zord noting that a successful breakout from this resistance could ultimately propel BTC to a new all-time high or soar to the $74,000 level. However, the analyst cautioned that despite the closeness of these highs, a definitive breakout has not yet occurred.
Conversely, the risk of rejection at this overhead resistance has significant downside consequences. If BTC fails to maintain its momentum here, Zord expects an immediate retracement back through the Range Mid, ultimately targeting the Range Low, located at $62,800.