Bitcoin’s daily chart is flashing caution after a sharp reversal candle on Monday was followed by downside continuation today. Yesterday’s session printed an unmistakably ugly candle – a long upper wick signaling rejection at the highs near $120K, with a close well off the top of the range. Crucially, that candle came on elevated volume, adding weight to the move and suggesting a possible blow-off top in the short term.
Today’s follow-through confirms that sellers are taking the reins, at least for now. Price is currently sitting around $116,800 after dropping over 2.5%, with the next major support zone near $112,000 – a level that previously capped price throughout early June before the breakout. If that fails, the 50-day MA and horizontal support around $105,800 should act as the next line of defense.
Volume has remained elevated, showing that this pullback has real participation – not just apathy or a lack of buyers. Bulls need to see price stabilize above $112K and reclaim lost ground quickly, or risk a deeper retrace after such an aggressive upside move.
For now, momentum has clearly stalled, and the risk of a more meaningful correction is on the table.
Today’s follow-through confirms that sellers are taking the reins, at least for now. Price is currently sitting around $116,800 after dropping over 2.5%, with the next major support zone near $112,000 – a level that previously capped price throughout early June before the breakout. If that fails, the 50-day MA and horizontal support around $105,800 should act as the next line of defense.
Volume has remained elevated, showing that this pullback has real participation – not just apathy or a lack of buyers. Bulls need to see price stabilize above $112K and reclaim lost ground quickly, or risk a deeper retrace after such an aggressive upside move.
For now, momentum has clearly stalled, and the risk of a more meaningful correction is on the table.
scott.melker@texaswestcapital.com
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.
scott.melker@texaswestcapital.com
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.