Why Bitcoinâs Technical Setup is Still Strong đ§”
In this thread, Iâll discuss why the long-term outlook for Bitcoin remains bullishâeven if the short-term moves seem unpredictable.
*Hereâs what's contained:*
âą What the descending channel really means
âą How liquidity pockets can trigger massive price surges
âą The crucial levels to watch next
đ° 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 crucialâlower highs have been forming since then. And with that comes something importantâŠ
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 whatâs 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