Why Bitcoin’s Technical Setup is Still Strong 🧵
In this thread, I’ll discuss why the long-term outlook for Bitcoin remains bullish—even if the short-term moves seem unpredictable.
*Here’s what's contained:*
• What the descending channel really means
• How liquidity pockets can trigger massive price surges
• The crucial levels to watch next
🔰 Since March, Bitcoin has been trading in a descending channel (you can even call it a bull flag).
However, instead of just labeling it as a particular pattern, it is essential to understand what is happening in terms of price, volume, liquidity, etc.
Let's start at the very beginning:
After hitting its ATH above $70K in March, we saw big-time profit-taking.
This is normal. Logically, the volume spiked.
But what followed was crucial—lower highs have been forming since then. And with that comes something important…
Liquidity pockets!
Each lower high holds liquidity.
This means buying pressure is sitting at key levels waiting to be tapped.
And guess what? The most gigantic pool of liquidity sits right at and above the ATH.
But let's move on for a second and discuss what’s happening in this descending channel.
Based on volume, we can see a beautiful accumulation.
- Volume stays low overall
- Highest volume whenever Bitcoin touches the lower trendline
-> Accumulators are active
