Upon testing the demand zone at $52,984.0, BTCUSD reversed course, initiating a strong ascent. However, this upward movement has stalled at the mid-range, primarily due to the presence of a bearish order block acting as resistance. This resistance has prompted a bearish shift, halting further upward momentum and leading to the current market retracement.
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BTCUSD has been fluctuating within a broad consolidation range, bounded by a supply zone at $69,293.0 and a demand zone at $52,984.0. This prolonged consolidation has been marked by multiple reversal patterns at the upper boundary. In April, a triple top pattern formed, signaling an impending decline. By July, a double-top pattern emerged, reinforcing bearish momentum. The August decline followed the formation of three ascending peaks, culminating in a significant Shift in Market Structure (SMS). This zone has seen active defence from bears, curbing bullish advances.
BTC Key Levels
- Demand Levels: $52,984.0, $46,516.0, $38,420.0
- Supply Levels: $62,233.0, $69,293.0, $100,000.0
Indicator Analysis
The indicators reflect a weakening market structure. The Average Directional Index (ADX), which measures trend strength, has shown extreme weakness since mid-March. With the exception of a brief period in July when the ADX reached 40, the trend strength has been in disarray, highlighting the erratic price fluctuations within the range.
Moreover, daily candles have fallen below the Moving Averages, signaling the ongoing price decline at the mid-point of the consolidation range. Given the current conditions, the market remains challenging for trading, with no clear directional bias emerging at this time.
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