Bitcoin is at a decisive turning point. After losing key support and pushing into range extremes, the market now faces a clear binary outcome: regaining the range highs and shift momentum back to the upside, or fail and extend to new weekly lows. The next step from this point will likely set the tone for Bitcoin’s near-term price.
Bitcoin tests range from extremes
Currently, Bitcoin is navigating a period of high tension in which it is testing its outer limits, a phase in which analyst Lennaert Snyder notes can be intimidating for many traders. However, these moments of extreme volatility often serve as the basis for the highest quality setups.
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The current strategy remains patient and focuses on a market structure break (MSB) as the key condition for entering a long position. On the H4 timeframe, the specific level to watch is the high of $66,590. Reaching and maintaining this level would signal a shift in the economy momentumwhich gave the first green light for bulls to get in.
While the $66,590 mark is the first hurdle, the real linchpin for a structural recovery optimistic flip is around $68,000. This level is of utmost importance as it houses Point of Control (POC) for the entire range. Reclaiming this zone would shift the narrative from a defensive to an offensive stance, confirming that buyers have regained control of the value area.
If Bitcoin successfully regains the USD 68,000 level, it will open a clear path to the USD 71,422 resistance. In addition, the ultimate goal of this step would be enormous liquidity cluster sits at $76,971. So the $68,000 zone is also a critical area for bears as it could become a major short entry after a confirmed rejection.
Conversely, the market should consider the possibility of a bull trap at the lower resistance levels. If Bitcoin overcomes the high of $66,590 and then faces a sharp rejection, it could indicate that the rally was just a liquidity grab. Such a failure would likely trigger an aggressive short-selling wave, potentially driving the price lower and setting new weekly lows.
Support at $65,000 lost – momentum shifts lower
In a recent one updateTed noted that Bitcoin has now broken below the key value of $65,000 support zoneshifting the short-term momentum back in favor of the bears. Losing this level weakens the immediate structure and opens the door for further exploration of the drawbacks.
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That said, significant bidding liquidity is between $60,000 and $63,000, creating a potential demand pocket. However, whether that zone holds may depend largely on broader market conditions, particularly how the sector is holding up stock market will behave in the coming sessions. Given the current setup, a sweep of the $60,000 lows seems increasingly likely before any meaningful reversal attempt occurs.
Featured image from Pixabay, chart from Tradingview.com