Over the past 24 hours, Bitcoin has seen a short-term pullback after being rejected from the daily resistance level, which aligns with the value area high. The reaction also coincides with a volatility squeeze shown on the Bollinger Bands — hinting at a controlled, technical rejection rather than a panic selloff. If the market follows traditional auction theory, a full rotation toward the value area low may now be in progress.
Key Technical Points:
-Value Area High Rejection: Price was rejected from high time frame resistance and respected auction theory principles
-Targeting $103,000 Value Area Low: Price may rotate lower if resistance continues to cap upside
-$100,000 Psychological Support Untapped: Remains a magnet for liquidity if the range plays out fully
Bitcoin’s structure over the past week has remained range-bound between $108,000 and $100,000. The recent failure to break through the value area high at the upper end of this range has now triggered a controlled pullback — technically expected based on market auction dynamics. Once a value area high is respected and price cannot sustain above it, the natural response is for the market to seek equilibrium by rotating toward the value area low.
This theory aligns with current confluences: the rejection occurred exactly where daily resistance, the value area high, and upper Bollinger Band resistance converged. The rejection was not sudden or erratic, but gradual — indicating that this is likely a technical rejection, not emotional selling. If this rotation plays out as expected, the next key support will be found near the $103,000 region.
What further supports this narrative is the untouched $100,000 psychological level, which remains a natural magnet for both liquidity and sentiment. From a market structure perspective, $100K serves as a clean test zone for buyers to step in and attempt to form a bottom — particularly if the pullback is slow and controlled rather than volatile and sharp. Until then, all signs suggest that the upper limit of the current range has held.
If Bitcoin remains capped beneath $108,000, expect further downside pressure. A full market auction rotation could bring price to $103,000, with the potential to dip as low as the $100,000 psychological level. This zone will be key for judging the strength of buyers and determining whether the range continues or a broader breakdown begins. Only a reclaim of the value area high would invalidate this structure.
Key Technical Points:
-Value Area High Rejection: Price was rejected from high time frame resistance and respected auction theory principles
-Targeting $103,000 Value Area Low: Price may rotate lower if resistance continues to cap upside
-$100,000 Psychological Support Untapped: Remains a magnet for liquidity if the range plays out fully
Bitcoin’s structure over the past week has remained range-bound between $108,000 and $100,000. The recent failure to break through the value area high at the upper end of this range has now triggered a controlled pullback — technically expected based on market auction dynamics. Once a value area high is respected and price cannot sustain above it, the natural response is for the market to seek equilibrium by rotating toward the value area low.
This theory aligns with current confluences: the rejection occurred exactly where daily resistance, the value area high, and upper Bollinger Band resistance converged. The rejection was not sudden or erratic, but gradual — indicating that this is likely a technical rejection, not emotional selling. If this rotation plays out as expected, the next key support will be found near the $103,000 region.
What further supports this narrative is the untouched $100,000 psychological level, which remains a natural magnet for both liquidity and sentiment. From a market structure perspective, $100K serves as a clean test zone for buyers to step in and attempt to form a bottom — particularly if the pullback is slow and controlled rather than volatile and sharp. Until then, all signs suggest that the upper limit of the current range has held.
If Bitcoin remains capped beneath $108,000, expect further downside pressure. A full market auction rotation could bring price to $103,000, with the potential to dip as low as the $100,000 psychological level. This zone will be key for judging the strength of buyers and determining whether the range continues or a broader breakdown begins. Only a reclaim of the value area high would invalidate this structure.
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Stay sharp, trade smart.
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Stay sharp, trade smart.
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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.