BTC’s failure to rally into a new all-time high (ATH) from the June 5th low can be attributed to the fact that price wasn't coming from a true discount zone. Similarly, key correlated assets like ETH and SOL also hadn’t reached their respective discount levels at that point. This misalignment created an unbalanced market structure, which necessitated a corrective move to realign broader market pricing.
Now that both ETH and SOL have tapped into their discount zones and shown signs of recovery, the conditions are more technically sound to project a potential ATH for BTC in the coming weeks or month. However, on a broader scale, this current rally could serve as a liquidity trap — drawing buyers into a high before distribution.
As for now, any sudden price drop should be seen as a potential buying opportunity into the anticipated new ATH. But caution remains key — any strong sell signal or reversal confirmation near the ATH zone could trigger a significant selloff as sellers regain control.
Now that both ETH and SOL have tapped into their discount zones and shown signs of recovery, the conditions are more technically sound to project a potential ATH for BTC in the coming weeks or month. However, on a broader scale, this current rally could serve as a liquidity trap — drawing buyers into a high before distribution.
As for now, any sudden price drop should be seen as a potential buying opportunity into the anticipated new ATH. But caution remains key — any strong sell signal or reversal confirmation near the ATH zone could trigger a significant selloff as sellers regain control.
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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.