Bitcoin Turned Down — It Was Only a Matter of Time
When the price gets stuck at the top and can’t move higher, it’s always a reason to stop and think. BTC got stuck around $118,000, started to form long upper wicks, and the volume started to decline. All of this pointed to a classic case of fading bullish momentum.
At this point, my indicator gave several key signals: weakening buying power, a change in momentum, and the formation of a potential reversal zone. I refrained from opening long positions — and this decision turned out to be the right one. The price went down and is now trading around $114,000.
Next, I will wait for a retest of the imbalance zone and work from the reaction from this zone.
It is important to understand: this correction is not something unusual. This is a technically sound phase after a strong rally. The market gets rid of speculative positions, gets rid of excessive leverage and prepares for either a reset or a deeper correction.
The market has weakened predictably, and that's actually a good thing. When the structure becomes clear, we can trade with a plan rather than just following our gut instinct