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This is probably how the current market condition will end Or you can say this is how Bear Market move ends.
The market usually goes through a sharp and painful drop first. I’ve seen this phase shake out a lot of traders. Panic sets in, people sell at a loss, and it feels like things will never recover. But eventually, the price finds a bottom.
Once the bottom is in, the market enters a long and frustrating consolidation phase. This is the period where prices move sideways within a range. It feels like nothing is happening. Volatility drops, interest fades, and most traders and investors lose patience. Many will give up during this phase, either selling at a loss or simply walking away due to boredom or frustration.
But this is exactly where the real opportunity lies. The consolidation zone is where smart money starts accumulating, slowly and silently. It’s not flashy and won’t make headlines, but this is when serious positioning begins. Retail investors often miss this phase because they expect a quick rebound, but the market doesn’t usually move that way.
I do not know at what phase of the market we are right and where the bottom will be, I am not someone who tries to find the exact bottoms. But i do know we are going to have a great opportunity soon.
Explaining why Bitcoin dropped on the news that Japan will hike interest rates
I know I’m a little late to explain this, but it’s still important to understand what actually happened.
First, one important correction The immediate impact you see on the chart was not institutions. Big banks and institutions don’t react that fast. That first sharp move was mostly retail and algos reacting to the headline.
Moves driven by news like this usually have a delayed impact when it comes to institutions.
Now the bigger picture
For years, Japan’s near zero interest rates made the Japanese Yen the funding currency. Institutions borrowed Yen cheaply, converted it to USD, and deployed that capital into higher yield assets stocks, bonds, and maybe Bitcoin.
This is known as Yen carry trade.
Here’s where it gets interesting. The US is cutting rates, while Japan is hiking rates. This squeezes institutions on both sides.
Funding in Yen becomes more expensive Returns in USD start coming down The carry trade becomes less attractive
That’s where the real pressure comes from and that impact shows up later, not instantly. I think 2026 will unfold so many things.
A few more rate hikes from Japan and rate cuts from the Fed can really turn things around.
$BTC Got rejected from the mid range two times and retested the range lows as well as we discussed in my last update.
One thing i am liking here is despite continuous sell pressure Bitcoin is still holding the range low. I am pretty sure a lot traders may have shorted it around the lows because traders pay so much attention to the candle bodies and last two days candles were good enough to attract short sellers.
$90k is the key area to watch if price manage to break and hold above that, I think we will see $93k again and probably a breakout of that as well.
CRYPTO MECHANIC
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Bitcoin continues to trade within the range, Tapped range low yesterday and bounced. $88200 - 89200 will be a key zone to watch. It is the mid range and the zone price broke yesterday.
Reclaim Above mid range - Price can go for $93k again As long as its below 89200 - it can go for range lows once again.
As the price is ranging we have to focus on these levels, personally i will just avoid this chop as i have been, As a SPOT only trader the risk and reward here is not attractive.
$HYPE From $31 to 22 Reading charts is this simple, When price breaks a key zone, you simply expect it to continue to the downside or upside depending on which way its breaking.
CRYPTO MECHANIC
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$HYPE was holding up pretty well while everything else was nuking. Holders were comfortably holding their positions. But now it’s trading below the zone it held for days, and this is probably when some holders will start giving up.
Bitcoin continues to trade within the range, Tapped range low yesterday and bounced. $88200 - 89200 will be a key zone to watch. It is the mid range and the zone price broke yesterday.
Reclaim Above mid range - Price can go for $93k again As long as its below 89200 - it can go for range lows once again.
As the price is ranging we have to focus on these levels, personally i will just avoid this chop as i have been, As a SPOT only trader the risk and reward here is not attractive.
I’ve been thinking about this for a long time, so I thought I’d share it with you.
I keep asking myself: what is left that can actually pump crypto now?
We’ve already had almost every bullish catalyst:
We had a pro crypto US government. We had ETFs. We had Saylor buying billions he almost $2B in the last two weeks. We had institutional demand and DATs We were expecting rate cuts to pump the market. we got three consecutive rate cuts, and still nothing happened.
At the same time, Gold, Silver, Nasdaq and SPX are all at all-time highs. Historically, crypto moves with the same macro and liquidity forces.
But this time, crypto just didn’t perform.
When I think about all this, one question keeps coming up:
What does crypto actually need to move?
Or are we simply at a stage where all the good news is already priced in, and price now needs time rather than news?
I don’t even remember the last time I shared a buy setup for altcoins. It’s mostly been BTC since prices broke the uptrend.
Personally, I’m just sitting on the sidelines and watching the market. I haven’t got any entry trigger. This is not the kind of market that favours my trading style.
$BTC Update on the pattern i shared and said we might see some volatility this week. It didn’t hold that low and dropped further. My guess for a breakout to the upside was obviously wrong.
What’s next? When price breaks a key zone, things usually become pretty clear for the next move.
As long as price doesn’t reclaim the broken zone, you simply expect it to continue its trend.
Besides the lower timeframe moves, we are still within a range the same range I’ve been sharing for the last two weeks.
CRYPTO MECHANIC
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Bitcoin took the lows. Too early to say if this was it. Sunday moves have never been reliable. Ideally, I want to see price hold that SFP. If it does, I think the scenario will likely play out and we get that EOY rally.
$ASTER been down since I made an update on it. Price still looks weak, it retested the same zone but got rejected. I think more downside is likely as long as price doesn’t reclaim the 1.13 zone.