In my view, this could be a false breakout signal on the daily trend line. However, to confirm that scenario, the price $BTC needs to close below the 69,800 USD range.
If this happens, the reduction in pressure will become clearer and the market may enter a deeper correction phase.
Conversely, if it wants to maintain a bullish structure, the current daily candle needs to recover strongly and almost fully encompass the previous candle's wick. However, with the current developments, that possibility is not really high. Selling pressure is quite dominant and buyers have yet to show strong enough signals to regain control in the short term.
My current outlook still leans negative, based on three main factors.
Firstly, the highest peak on the daily frame has not been broken, meaning the market has not created a confirmed signal for a new upward trend.
Secondly, the bears are showing dominance, as evidenced by the weak price reaction in the retracement areas.
Thirdly, below the current area, there is still a large liquidity cluster around 69,000 USD or lower, and that is an area that can definitely be swept by the market if the downtrend continues.
I have held a short position since 73.5K and have now taken profits on half of the position. I will continue to observe the rest and wait for the weekly candle to close before deciding on the next action.
#BTC
