Technical Analysis Breakdown for
$BTC :
1. Price Structure & Market Phases:
The chart shows a bullish move that ends in a Three Boll Top formation, a variant of triple top, indicating potential exhaustion of buying pressure.
After the top, there's a CHoCH (Change of Character), which signals a shift from bullish to bearish sentiment.
This is followed by BOS (Break of Structure) — confirming bearish momentum as the price starts forming lower highs and lower lows.
2. Volume Profile Insight:
The Volume Profile (Visible Range) on the right side shows high volume nodes around $109,000 – $110,000, marking these levels as strong resistance.
Lower volume areas between $106,000 – $104,000 suggest inefficiency zones (Fair Value Gaps – FVG) that price may want to fill, adding confluence to bearish continuation.
3. Key Confluence Zone (Short Entry Setup):
The orange highlighted zone is the key entry confluence area, defined by:
Order Block (OB)
Fair Value Gap (FVG)
Support turned Resistance
Downtrend Line Retest
The trader anticipates price will retrace to this zone, offering an ideal short entry with low risk and high reward.
Entry aligns with trendline resistance and OB-FVG overlap, supporting a reactionary move downward.
4. Trade Execution Plan:
Once price hits the orange zone, the trader expects bearish rejection.
The green box below is the Take Profit zone, around $101,000–$100,000, in line with historical support and high-volume node.
Risk is defined by the zone’s upper bound or beyond the last swing high.
Fundamental Analysis (Macro View):
From a fundamental perspective, Bitcoin's price action may currently be influenced by:
1. U.S. Macroeconomic Indicators:
CPI inflation data, Fed rate decisions, and NFP reports affect investor sentiment toward risk assets like crypto.
If inflation remains sticky or the Fed signals prolonged high rates, Bitcoin could face further downward pressure.
2. Market Sentiment & Liquidity:
Recent outflows from BTC ETFs or lack of institutional inflows could explain the current decline.
Liquidity thinning during summer months can exacerbate volatility.
3. Regulatory Environment:
SEC stances on crypto exchanges or ETFs may also pressure price direction, especially if regulatory news is unfavorable.
4. Network Activity & On-chain Metrics:
Decline in active addresses or miner revenues often signals weakening fundamental strength, aligning with technical bearishness.
This chart illustrates a well-crafted SMC-based bearish strategy. The trader combines market structure breaks, volume zones, FVGs, and trendlines to anticipate a short entry. This is further supported by macroeconomic uncertainty and volume inefficiencies. If the price reacts strongly to the OB-FVG confluence zone, we can expect downside toward the $101K–$100K area. This is a professional approach balancing technical confluence with fundamental context.
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