Overview:
Bitcoin is currently undergoing a significant technical correction after rejecting a strong resistance level. The 4-hour chart shows a decisive bearish breakdown, suggesting that the bulls are losing control and sellers are gaining momentum. As the price continues to fall, all eyes are now on the major support levels that could trigger a potential reversal—or further acceleration to the downside.
📊 Technical Breakdown:
1. Major Resistance Zone (~$110,000 – $111,000):
This zone has acted as a strong supply area, where price has repeatedly failed to break through. Multiple rejections from this zone confirm it as a key distribution area, where large sellers are stepping in. The repeated failure to close above it shows market exhaustion at the highs.
Multiple candle wicks and strong bearish closes around this area.
Bull traps occurred after brief moves above this resistance, followed by sharp sell-offs.
2. Trendline Breakout:
Previously, BTC had been respecting a rising ascending trendline, which served as dynamic support throughout the last rally. Recently, price broke below this trendline with strong bearish momentum.
This marks a break in market structure.
The trendline retest acted as resistance—textbook confirmation of the trend shift.
3. QFL (Quantity Following Line) Breakdown:
The QFL zone, typically a bullish defense level, has failed to hold. This breakdown confirmed that bulls lost a critical level of control.
Price briefly retested the QFL from below before continuing downward.
This zone now acts as resistance, reinforcing the bearish outlook.
🔻 Downside Targets & Reversal Zones:
✅ Reversal Zone 1 (~$106,000):
This minor support level provided minimal reaction and was quickly breached.
Lack of volume or candle confirmation suggests weak buying interest here.
✅ Next Reversal Zone 2 (~$104,000):
This zone has historical importance as a short-term demand area.
Monitor closely for bullish candlestick patterns, volume spikes, or bullish divergences to assess potential bounce scenarios.
✅ Major Support Zone (~$102,000 – $100,000):
This is the most critical level in the near term.
Historically, price has reversed strongly from this zone, indicating strong buyer interest.
If price breaks and closes below this level, expect a high-probability continuation towards the $98,000 psychological level or lower.
🧠 Market Psychology:
The breakdown from the trendline and QFL indicates panic or profit-taking.
Many late long positions are likely being liquidated.
Smart money may be waiting at the $100K zone to accumulate, depending on market conditions and macro factors.
🎯 Trading Strategy Ideas:
🛑 For Bears (Shorts):
Stay short below $110K resistance.
Trail stop-loss above QFL zone or trendline breakdown.
Look to take profit at $104K and $102K zones.
Add to positions on confirmed bearish retests of broken supports.
📈 For Bulls (Longs):
Wait for clear confirmation (e.g., bullish engulfing, double bottom, RSI divergence) near $104K or $102K before entering.
Avoid catching falling knives—patience is key.
Consider scaling in with smaller position sizes and tight stops.
Watch for a reclaim of the QFL zone or a strong bounce from the $100K psychological level.
🧭 Bias: Bearish
Structure: Lower highs & lower lows.
Momentum: Selling volume increasing, bulls losing steam.
Invalidation: A strong daily close above $111K would flip bias back to neutral/bullish.
🧩 Final Thoughts:
Bitcoin is currently in a fragile state as it retraces from a failed breakout. With multiple key support zones ahead, the next few sessions will be critical in determining whether bulls can reclaim control or if we see deeper downside movement. Watch for signs of exhaustion from sellers or fresh accumulation zones to position accordingly.
Bitcoin is currently undergoing a significant technical correction after rejecting a strong resistance level. The 4-hour chart shows a decisive bearish breakdown, suggesting that the bulls are losing control and sellers are gaining momentum. As the price continues to fall, all eyes are now on the major support levels that could trigger a potential reversal—or further acceleration to the downside.
📊 Technical Breakdown:
1. Major Resistance Zone (~$110,000 – $111,000):
This zone has acted as a strong supply area, where price has repeatedly failed to break through. Multiple rejections from this zone confirm it as a key distribution area, where large sellers are stepping in. The repeated failure to close above it shows market exhaustion at the highs.
Multiple candle wicks and strong bearish closes around this area.
Bull traps occurred after brief moves above this resistance, followed by sharp sell-offs.
2. Trendline Breakout:
Previously, BTC had been respecting a rising ascending trendline, which served as dynamic support throughout the last rally. Recently, price broke below this trendline with strong bearish momentum.
This marks a break in market structure.
The trendline retest acted as resistance—textbook confirmation of the trend shift.
3. QFL (Quantity Following Line) Breakdown:
The QFL zone, typically a bullish defense level, has failed to hold. This breakdown confirmed that bulls lost a critical level of control.
Price briefly retested the QFL from below before continuing downward.
This zone now acts as resistance, reinforcing the bearish outlook.
🔻 Downside Targets & Reversal Zones:
✅ Reversal Zone 1 (~$106,000):
This minor support level provided minimal reaction and was quickly breached.
Lack of volume or candle confirmation suggests weak buying interest here.
✅ Next Reversal Zone 2 (~$104,000):
This zone has historical importance as a short-term demand area.
Monitor closely for bullish candlestick patterns, volume spikes, or bullish divergences to assess potential bounce scenarios.
✅ Major Support Zone (~$102,000 – $100,000):
This is the most critical level in the near term.
Historically, price has reversed strongly from this zone, indicating strong buyer interest.
If price breaks and closes below this level, expect a high-probability continuation towards the $98,000 psychological level or lower.
🧠 Market Psychology:
The breakdown from the trendline and QFL indicates panic or profit-taking.
Many late long positions are likely being liquidated.
Smart money may be waiting at the $100K zone to accumulate, depending on market conditions and macro factors.
🎯 Trading Strategy Ideas:
🛑 For Bears (Shorts):
Stay short below $110K resistance.
Trail stop-loss above QFL zone or trendline breakdown.
Look to take profit at $104K and $102K zones.
Add to positions on confirmed bearish retests of broken supports.
📈 For Bulls (Longs):
Wait for clear confirmation (e.g., bullish engulfing, double bottom, RSI divergence) near $104K or $102K before entering.
Avoid catching falling knives—patience is key.
Consider scaling in with smaller position sizes and tight stops.
Watch for a reclaim of the QFL zone or a strong bounce from the $100K psychological level.
🧭 Bias: Bearish
Structure: Lower highs & lower lows.
Momentum: Selling volume increasing, bulls losing steam.
Invalidation: A strong daily close above $111K would flip bias back to neutral/bullish.
🧩 Final Thoughts:
Bitcoin is currently in a fragile state as it retraces from a failed breakout. With multiple key support zones ahead, the next few sessions will be critical in determining whether bulls can reclaim control or if we see deeper downside movement. Watch for signs of exhaustion from sellers or fresh accumulation zones to position accordingly.
For Daily Trade Setups and Forecast: 📈 t.me/xauusdoptimizer
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
For Daily Trade Setups and Forecast: 📈 t.me/xauusdoptimizer
Premium Signals Fr33: 💯 t.me/xauusdoptimizer
🥰🥳🤩
Premium Signals Fr33: 💯 t.me/xauusdoptimizer
🥰🥳🤩
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.