Bitcoin is once again at a critical technical crossroads, with a widely discussed chart structure suggesting that a sharp decline could be on the table. A recent analysis shared on X by crypto trader @0xPepesso points to a classic bearish continuation pattern that, if confirmed, could erase as much as $30,000 from current price levels.

Bitcoin’s Bear Flag Structure Signals Downside Risk

Bitcoin’s current market structure is being described as a developing bear flag on the daily chart by 0xPepesso, based on the price action since its sharp decline earlier in the year. 

The initial move established the foundation of this pattern, as Bitcoin dropped from around $98,000 to approximately $60,000 in a steep and decisive sell-off. This move forms what technical analysts refer to as the “flagpole,” representing strong downward momentum and a clear shift in trend direction.

After that decline, price action transitioned into a slower, upward-sloping channel that brought Bitcoin to its current value of $80,900. Instead of showing strong recovery strength, this phase has been characterized by a gradual grind higher. Such movements are often interpreted as corrective, meaning they do not necessarily indicate a trend reversal but rather a temporary consolidation within a broader downtrend.

As this structure develops, attention shifts toward key resistance zones. Bitcoin is set to test a cluster of important moving averages, including the 100-day and 200-day exponential moving averages around the $78,500 region. These levels often act as dynamic resistance during bearish phases, particularly when longer-term averages flatten and lose upward momentum.

The positioning of price beneath these moving averages adds weight to the bearish interpretation. In technical terms, repeated rejection at these levels can suggest that sellers remain in control, while buyers lack sufficient strength to reclaim higher ground. As a result, the market structure will continue to lean toward potential downside continuation unless a clear breakout is established.

A $50,000 Target Emerges If Bitcoin Breakdown Confirms

If Bitcoin fails to break above the moving average cluster and instead loses the lower boundary of its rising channel, the bearish structure would be confirmed. In such cases, technical theory often projects a move similar in scale to the prior decline.

Applying this to current levels places a downside target between $50,000 and $55,000. From resistance near $78,500, this represents a possible drop of roughly $25,000 to $30,000, aligning with the risk of a wipeout. Historical behavior supports this outcome, as bear flags typically resolve in the direction of the prevailing trend.

The pattern, however, has an invalidation level. A strong daily close above the 200-day moving average would weaken the setup and open room for upside momentum. This could trigger a short squeeze, pushing Bitcoin toward the $85,000 to $88,000 range.

Even so, the broader structure remains cautious, with limited macro support for sustained upside, leaving the bearish scenario in focus unless price action shifts decisively.

Featured image from Dall.E, chart from TradingView.com

India’s volatility index (VIX), widely regarded as the market’s fear gauge, offered investors a much-needed respite on Tuesday, cooling off by 15% to 19.80 after surging as much as 100% in the last month following sky-high crude prices amid US, Israel-Iran war in the Middle East.

The decline came after US President Donald Trump said the war with Iran could end very soon, easing concerns about prolonged disruptions to global oil supplies. The remarks triggered a sharp pullback in oil prices and boosted hopes that inflationary pressures may ease, potentially giving the U.S. Federal Reserve more room to consider interest rate cuts.

“With tensions now showing signs of cooling, volatility could decline rapidly toward the 17 level or lower. Such a sharp contraction in VIX would lead to a corresponding fall in options premiums. Given that today also coincides with Nifty’s weekly expiry, derivatives traders will need to account for the possibility of a sudden volatility crash while positioning in options,” says Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth.

Also read: Uno Minda shares jump over 3% as Jefferies initiates coverage with Rs 1,350 target price

The surge in India VIX indicates that traders are pricing in wider market swings in the near term. A rising volatility index typically reflects expectations of larger price movements in equities, often driven by macroeconomic or geopolitical shocks.

Satish Kumar, managing director and head of research at InCred Research Services, said market corrections are a natural part of the investment cycle and that the downside risk may be limited if geopolitical clarity emerges.

“Market corrections are a part of the cycle. At this stage, we don’t see significant downside risk left in equities if clarity emerges. Oil at around $115 per barrel is unlikely to sustain for long, and once prices stabilise, markets should find their footing again,” he said.

Kumar added that a large part of the geopolitical premium has already been priced into commodities and risk assets, and markets could shift their attention back to earnings and fundamentals if tensions do not escalate further.

From a technical perspective, Anand James of Geojit Investments suggests that the pullback that ensued without dipping much beyond the opening lows and the subsequent close above 24,000 yesterday have rekindled upside hopes. The vertical rise expected thereof today may be limited to 24,300-24,370, followed by consolidation or dips. However, a direct rise above the same could call for 25,000.

Nifty 50 opened with a gap-up near the 24,300 zone but failed to sustain the early gains, encountering immediate resistance at higher levels. The index is currently attempting to stabilise after the recent sharp correction. Immediate support is placed around 24,000, which coincides with the previous closing level, while deeper support is seen near 23,800 if selling pressure intensifies, Ponmudi R, CEO of Enrich Money, said.

Also read: Blood on the street? What the fog of every past war tells us about Nifty’s next move

On the upside, 24,600 remains a crucial resistance hurdle, and a decisive breakout above this level could pave the way for a recovery toward the 25,000 psychological mark. Momentum indicators continue to reflect a cautious undertone, with the RSI moving above 30 and gradually turning upward from oversold territory, indicating the possibility of a short-term recovery. However, the MACD remains in negative territory, suggesting that underlying bearish pressure has not fully eased, he added. Overall, the near-term outlook remains cautious to mildly positive, with the market likely to trade within a volatile and range-bound structure.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Indian stock markets are expected to open gap down on Monday as Israel launched preemptive strikes on Iran on Saturday after the US and the West Asian nation failed to iron out their differences over the nuclear deal.

President Donald Trump called it a “major combat operations in Iran” in a video release on social media after the strikes were launched near the offices of Supreme Leader Ayatollah Ali Khamenei.

The global cues remain negative and are expected to weigh on markets, despite a positive surprise that came its way on Friday in the form of India’s Q3 GDP numbers of 7.8%, reflecting broad-based strength in the economy.

Kranthi Bathini, Director-Equity Strategy at WealthMills Securities said finally the inevitable happened after weeks of uncertainty. The Street was anticipating conflict blowing into war sooner or later, he said.

Bathini sees a choppy trade on Monday, expecting sharp cuts that may stay over a near term. The trajectory in crude oil will remain a key trigger for domestic markets and a level around $80 per barrel could be a strong negative, the WealthMills expert said.

His advice to investors is to remain invested and utilise corrections to buy on dips for long term.

Bathini said the world has seen two major conflicts in the past 4-5 years – the Russia-Ukraine war and Israel-Hamas conflict that escalated to Iran as US bombed its nuclear facilities. “The Iranian response will decide the course of the conflict,” Bathini said.Expert Anuj Gupta also expects the markets to open with cuts. He suggests investors to reduce their existing positions and wait for things to unfold before making new positions.

India’s benchmark indices Nifty and the BSE Sensex, ended with deep cuts on Friday amid selling pressure across the board. Auto, financials and FMCG were major laggards while the IT sector saw selective buying action. In a volatile session, the broader Nifty edged lower by 317.90 points, or 1.25%, to close at 25,178.65, while the 30-share Sensex plunged by 961.42 points, or 1.17%, to settle at 81,287.19.

What transpired?

Iran currently has a self-imposed limit on its ballistic missile program, limiting its range to 2,000 kilometers (1,240 miles), The Associated Press reported. That puts all the Middle East and some of eastern Europe within reach. There is no public evidence of Iran seeking to have intercontinental ballistic missiles, though Washington has criticized its space program as potentially allowing it to one day, the report said.

Iran has maintained that it no longer enriches uranium, but it has blocked international inspectors from visiting the sites the United States bombed during the 12-day war in June.

AP report said it analysed satellite photos that showed new activity at two of those sites, suggesting Iran is trying to assess and potentially recover material there.

Ahead of the strikes, Trump built up the largest U.S. military presence in the Middle East in decades. The arrival of the aircraft carrier USS Abraham Lincoln and three guided-missile destroyers at the end of January bolstered the number of warships in the region.

Blasts in northern Israel and sirens in Jordan

Explosions rocked northern Israel on Saturday as the country worked to intercept incoming Iranian missiles after launching a nationwide attack with the U.S. on Iran. The blasts echoed just after the Israeli military said it would be using its air defense systems to bring down the Iranian fire.

There was no immediate word on any damage or casualties from the ongoing attack.

Meanwhile, Israel said its air defenses will activate and nationwide warning was issued.

Global cues

Global cues remain largely negative. Frontline indices on Wall Street ended with cuts on Friday. The Dow Jones slumped over 521.28 points or 1% to end the day’s at 48,977.90. The Nasdaq Composite tanked 210 points or 1% to settle at 22,668.20. Meanwhile, the S&P 500 Index also ended in the red though, the fall was less severe at 0.43%.

The European markets also displayed a somber mood with key indices like Spain’s IBEX 35 and French CAC 40 falling up to 0.73%. Germany’s Dax ended flat while the Stoxx 600 and the UK’s FTSE 100 index gained 0.6% and 0.1%.

Tech view

Bajaj Broking said the volatility is likely to remain elevated amid uncertain global cues. “On the higher side Friday’s breakdown area of 25,400 – 24,500 is likely to act as immediate resistance. Bias remains down. A follow-through weakness below last week low (25,141) will open further downside towards 25,000-24,800 levels in the coming weeks being confluence of 52 weeks EMA and key retracement,” the brokerage said.

Decoding the chart, Dr. Ravi Singh, Chief Research Officer from Master Capital Services said index has breached its critical 25,300 support and the 200-day EMA, signaling a bearish shift in short-term momentum. For the coming week, the 25,000 psychological mark stands as the make-or-break level and a breakdown here could drag prices toward the 24,800 area. On the upside, 25,350 and 25,600 now act as stiff hurdles, Singh said.

“Strategy remains sell on rises until the index decisively reclaims 25,600. Expect continued volatility as the market searches for a stable bottom,” the analyst said.

Also Read: Iran-Israel conflict: Expect a gap-up opening in gold and silver. Here’s how to trade bullion on Monday

(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)

In the past few weeks, Ethereum has been experiencing sideways movements, causing its price to fall below the $3,500 mark. However, with several key updates incoming, such as the Fusaka Upgrade, ETH may attract the necessary attention and adoption that will pave the way for a major rally to pivotal levels.

Fusaka Upgrade The Tipping Point For Ethereum

As the broader crypto sector evolves, Ethereum is set to roll out one of its most crucial updates: The Fusaka Upgrade, which will bolster the leading network. Set to launch in December, the Fusaka update, which is intended to increase scalability, boost staking effectiveness, and reduce transaction costs, signifies another significant phase in Ethereum’s long-term plan for improved performance and decentralization.

While the impending update is pivotal, Ash Crypto, a market analyst and investor, claims it’s emerging as a potential trigger for the next major breakout in ETH’s price. “No one is talking about this, but the ETH fusaka upgrade on December 3 could be the next leg up catalyst,” the expert stated.

Ash Crypto’s bold statement is fueled by the several enhancements that the upgrade is poised to make to the Ethereum network and its ecosystem. He suggests that Fusaka’s entry into the market would reignite bullish momentum across ETH’s ecosystem that will extend to its price dynamics. 

According to Ash Crypto, ETH is entering its “Performance Era” as participants anticipate the key upgrade. When the update eventually goes live, it will enable more Transactions Per Second (TPS), lower fees, higher throughput, support for additional users, and accommodate high demand. 

With the launch date drawing closer, ETH whales are seen buying billions worth of ETH, which may imply a strategic positioning by high-net-worth investors ahead of major price spikes. Ash Crypto has predicted a possible price rally that is comparable to the one observed in the 2021 cycle.

In the 2021 cycle, ETH experienced a massive leg-up, taking its price from $80 to the $4,800 level. Since current market trends are mirroring 2021’s, the expert is confident that ETH could easily move up to the $7,000-$8,000 zone, especially if it surpasses and holds above $5,000.

Impending Breakout From Multi-Year Formation

After examining Ethereum’s chart, StockTrader Max, a crypto analyst on X, reveals that ETH is about to break out from a multi-year consolidation. Specifically, ETH has been in this consolidation phase for over 5 years.

However, recent price action indicates that the altcoin looks primed to enter price discovery, triggering a rally to new all-time highs. As indicated on the chart, StockTrader Max expects ETH to skyrocket to the $8,000 price mark and beyond.

While the price has fallen below the $3,500 level, the Ethereum Fear and Greed Index has moved into Fear territory. This suggests that ETH’s market sentiment is heavily shifting toward a more cautious state, as it is caught between short-term pressure and long-term optimism. Presently, speculations are whether the fear is a warning sign or the quiet before the altcoins’ next significant action.

Featured image from Pxfuel, chart from Tradingview.com

Over the last few weeks, analysts have been predicting that the Bitcoin price could crash again after the initial October 10 crash. This is because of the weakening market trends that have shown that Bitcoin is still favoring a downtrend at this point. Crypto analyst Lixing_Gan on the TradingView website also shares this view, with the appearance of a descending trend pattern that suggests that the Bitcoin price is more likely to fall than rise.

Bitcoin Price At Risk Of Major Crash Below $90,000

So far, the Bitcoin price has been able to maintain its hold above the psychological level of $100,000, despite bears briefly pushing the price below this level. It has been trading in a tight range of $101,000 to $105,000 during this time, but with no notable momentum that could push its price higher. This tight range, unfortunately, plays into the descending pattern that maps a path downward.

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According to the crypto analyst’s chart, the descending pattern was formed at the start of October, well before the historic 10/10 crash. This means that the bearish trend had begun much earlier, and the resultant crash was only in response to bullish positions weakening across the board.

This was triggered by massive sell-offs, mainly among whales and holders that have held onto their BTC for a notable amount of time. Over the last few months, these long-term holders have sold off more than 390,000 BTC, triggering billions of dollars in selling pressure. Given this, it is no surprise that the Bitcoin price broke down the way it did at the start of October.

These sell-offs from the long-term holders, though, the crypto analyst believes, are a distribution phase. As they sell off their holdings to newer investors, the cost basis for each Bitcoin begins to rise, increasing the likelihood that buyers will hold for longer.

Looking at the descending trendline from here, technical analysis suggests that the Bitcoin price is still testing the upper bound of the trendline. As the analyst explains, this upper bound happens to coincide with $106,500, which has been a major resistance for the cryptocurrency.

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In addition to the resistance above $106,000, the Bitcoin Ichimoku cloud also shows a rise in bearish pressure. This means that the $100,000 psychological level is still at risk, and if it breaks, then the current decline could deepen.

The targets for this Bitcoin price crash lie well below the $90,000 level. The first major support is at $93,000, but a break below here could extend the decline to as low as $88,000 before the bulls find their footing again.

Featured image from Dall.E, chart from Tradingview.com

Despite the Bitcoin price bouncing back from its October 10 flash crash, the expectations are yet to turn bullish for the cryptocurrency. Predictions for where the cryptocurrency could end have been more bearish, especially with sentiment still learning toward the negative. With the price failing to reclaim $115,000, the likelihood of a crash has risen, and calls for the next bear market have grown even louder.

Bitcoin Price Is Set To Crack

Crypto analyst RealMacro highlights that there is the possibility that the Bitcoin price could suffer a crack soon. This comes as the Bitcoin price is continuing to consolidate around the $110,000 level, and has not made any meaningful move with momentum from here.

This comes as the cryptocurrency has also shown a lot of vulnerability during this time, and now, the crypto analyst believes that the Bitcoin price is at a “critical inflection point.” There is the possibility that the Bitcoin price can still bounce from here and make a brand-new all-time high. However, as the bears are gaining more ground, the price could still see a major breakdown from here.

According to the crypto analyst, if the Bitcoin price were to see a breakdown here, the result would be what they call a waterfall decline. This is usually a sharp decline that sends the price toward new yearly lows, and would result in a double-digit decline.

For Bitcoin, if this crack occurs, then the crypto analyst believes that the Bitcoin price could crash by more than 50%. As a result, the crypto analyst advises investors to be wary and try to be out of the market before this major crash happens.

Not only is the price expected to crash by more than half, but the analyst also sets a target below $30,000. This would mean a 70% decrease in the price, and probably lead to an ever wider wipeout for altcoins in the market.

Presently, the Bitcoin Fear & Greed Index is still showing a lot of fear in the market. Earlier this week, the index drove into the Extreme Fear territory, suggesting that there wasn’t liquidity flowing into the market. With a move up into fear, there has been a bit of improvement, but investors are still very wary.

Nevertheless, times like these have often been the best times to get into the market, as they provide good entries for investors. But with the Bitcoin price still trending above $100,000, questions abound as to what would happen if the price crashed further.

Featured image from Dall.E, chart from TradingView.com

Galaxy Digital chief executive Mike Novogratz said a very dovish choice to lead the Federal Reserve could push Bitcoin into a major rally, even as he warned such a shift would carry serious costs for the US.

According to Novogratz, if the next Fed chair after Jerome Powell favors aggressive rate cuts, the dollar could weaken and risk assets would get a big bid. He added that while that outcome would be great for crypto, it would not be good for the country.

Dovish Fed Could Send Bitcoin Higher

Novogratz said during an interview with Kyle Chasse published on YouTube that if the Fed begins cutting when it probably should not, and a strongly dovish chair is installed, investors could rush into assets like gold and Bitcoin.

Based on reports, he suggested a scenario where markets chase higher prices in a short span, producing what traders call a blow-off top. He also allowed that Bitcoin could reach $200K under that set of conditions.

Markets Won’t React Until The Pick Is Real

Reports have disclosed that US President Donald Trump has narrowed his shortlist to three names: White House economic adviser Kevin Hassett, Federal Reserve Governor Christopher Waller, and former Fed Governor Kevin Warsh.

Trump told reporters on Sept. 6 that those were the top three. Novogratz said markets often wait for official action, so a rally of the size he described may not begin until a decision is announced and investors are sure of the policy shift.

Policy Choice May Undercut Dollar

Daleep Singh, vice chair and chief global economist at PGIM Fixed Income, agreed that the Fed could act quite differently after Powell’s term ends in May 2026.

According to Singh, the risks to the dollar may be skewed to the downside if policymakers turn more dovish. Novogratz warned this could erode the Fed’s independence and produce broader problems for the US economy, even as it lifts prices of risk assets.

Recent Moves Add Context

The Fed delivered its first rate cut of 25 basis points in September, a move markets largely expected. Reports show that Governor Waller had been urging a cut as early as July, which highlights the range of views inside the system.

Those past steps help explain why some investors now talk about how far policy could tilt and how big an impact that might have on crypto.

Featured image from Pixabay, chart from TradingView

Reliance Industries’ (RIL) stronger-than-expected Q1 earnings and upbeat coverage from top brokerages have done little to lift investor sentiment, with the energy-to-retail giant’s shares sliding nearly 7% since the results were announced last month. Market experts view the stock as being in a corrective or consolidation phase, suggesting the prevailing trend may persist.

The stock is likely to stay in the spotlight ahead of its Annual General Meeting (AGM) on August 29 — here’s how investors can approach it.

RIL’s underperformance comes amid subdued Nifty on the back of Trump tariff concerns and overall weak April-June quarter earnings. The 50-stock index has shed 350 points or 1.4% as of Wednesday since July 18, when RIL declared its results.

Decoding RIL’s weakness on the daily chart, Drumil Vithlani, Technical Research Analyst at Bonanza said that Reliance Industries shares are hovering near a key horizontal support zone of Rs 1,380 – Rs 1,375, which has been tested multiple times in recent sessions. “The RSI at 36.88 indicates the stock is in oversold territory, but no clear reversal signal has emerged yet,” he said.

The Average Directional Index (ADX) is around 32 which suggests a moderate downtrend still in play, Vithlani said warning that a breakdown below Rs 1,375 on volume could accelerate selling pressure towards Rs 1,320 – Rs 1,300. Resistance lies at Rs 1,408 (20 EMA), followed by Rs 1,423 (50 EMA), this analyst said, adding that a sustained close above Rs 1,423 would be an early sign of reversal.

Nilesh Jain, Head Vice President, Equity Research Technical and Derivatives at Centrum Broking sees Reliance stock under a consolidation. The short term structure is looking sideways to weak, however one can start accumulating Reliance as a positional bet, he said, placing the important support at Rs 1,325 and resistance at Rs 1,450.RIL shares which ended Wednesday at Rs 1,384 are currently trading below its 50-day simple moving average (SMA). The stock has been quite volatile with Trendlyne data suggesting a 1-year beta of 1.2.Also Read: Vodafone Idea’s 60% slump has more bearish undertones as analysts sound warning ahead of Q1 earnings

Brokerages gung-ho

Mukesh Ambani-led company had reported a 78% year-on-year increase in its Q1FY26 consolidated net profit to Rs 26,994 crore, compared to Rs 15,138 crore in the year-ago period. The sharp increase in profit was primarily driven by a one-time gain from the sale of the company’s stake in Asian Paints, which contributed to Rs 8,924 crore in other income. The profit, attributable to the owners of the company, exceeded Street estimates of Rs 22,069 crore. The company’s revenue from operations rose 5.3% to Rs 2,48,660 crore versus Rs 2,36,217 crore in the year ago period.

Also Read: Reliance Industries Q1 Results: Cons PAT jumps 78% YoY to Rs 26,994 cr, beats Street estimates

Brokerages like Macquarie and Morgan Stanley reiterated ‘Outperform’ and ‘Overweight’ ratings on RIL counter while domestic ones like Motilal Oswal Financial Services (MOFSL) and Nuvama Institutional Equities have taken a ‘Buy’ view.

The targets suggested by them are Rs 1,500, Rs 1,617, Rs 1,700 and Rs 1,767, respectively. But these targets are long term and based on the fundamental reading of RIL by respective brokerages,

Macquarie in a post earnings note said that expected near-term moderation in the stock price.

Morgan Stanley flagged misses in retail and refining revenue but highlighted optimistic guidance, including a plan to double earnings by 2030.

While MOFSL remains optimistic about Jio’s prospects, Nuvama sees Reliance’s New Energy business as a long-term growth engine for its ‘Buy’ rating.

AGM in spotlight: 5 things to watch out for

Investors will be keeping an eye on the RIL commentary on the following things:

1) Doubling of overall business by 2030

Nuvama in a note said that the company’s commentary on its target of overall business by 2030 will be watched. In its view, Jio Platforms and Reliance Retail Ventures (RRVL) will be key contributors.

Also Read: Down 20% from peak, Yes Bank trading below key averages. What’s the potential downside?

2) New energy business

This brokerage expects the New Energy (NE) business will likely replicate O2C earnings. NE ecosystem comprising polysilicon-to-modules, GH2 production, electrolyser and battery manufacturing; use of captive green power to slash cost by 25%.

3) Jio, retail IPO timelines

It argues this might trigger higher value, but is likely to be offset by holding company discounts for RIL investors.

4) Growth in retail post-reshuffle; updates on Jio Hotstar, FMCG expansion

Growth in its retail business remains crucial for investors while an update on Jio Hotstar monetisation and FMCG expansion is awaited.

5) Progress on massive petchem expansion

Petchem capacity expansion—polyester (5mtpa), vinyl (3.9mtpa), carbon fibre (20 ktpa)—by FY27 remains a key variable to monitor as RIL’s focus now shifts to O2C, Nuvama said. RIL plans to drill additional wells by H2CY28E to enhance gas production and offset the natural decline at KG-D6 basin, the brokerage noted.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Bitcoin (BTC) prices are currently hovering near $118,000 after a modest price recovery in the last week resulted in a 4.17% price gain. With a new week ahead, a top market analyst with X username KillaXBT shares some technical insights on the present Bitcoin market structure and also discusses potential price developments.

Related Reading: Harvard Reveals $117M BlackRock Bitcoin ETF Stake In SEC Filing – Details

Monthly Open Flip Boosts Bitcoin Outlook, But Beware Liquidity Hunts – Analyst

In an X post on August 9, KillaXBT gives a weekly analysis report of the Bitcoin price’s movement for the first week in August while also sharing future projections. In their observations, the market expert notes that Bitcoin started the month on a strong technical footing, flipping the monthly open at $115,752 into support,  a move traders often interpret as a bullish signal.

However, KillaXBT explains that Bitcoin historically tends to wick either up or down in a new month, forming one side of the monthly candle’s wick in a pattern sometimes referred to by traders as the “monthly open trap.” Therefore, the current setup has market watchers closely monitoring for either a sustained uptrend or a liquidity-driven retracement before continuation.

In terms of liquidity, the crypto analyst has also observed that significant 2-week BTC liquidations are building above the $120,000 mark. This zone is also aligned with the previous weekly open ($119,414), creating a high-probability target should bullish structure remain intact. At present, BTC is testing a lower-timeframe (LTF) downtrend line. KillaXBT explains that a confirmed break above this trendline could pave the way for a decisive move toward $120,000 and beyond, while traders remain wary of potential liquidity hunts that could briefly push price lower before resuming the uptrend.

Two main scenarios are now emerging for traders. First, BTC could maintain its bullish structure, continuing the climb toward the $120,000 liquidity pool and potentially targeting the $123,186 monthly high (ATH). This path aligns with the current technical structure, which shows no immediate signs of bearish continuation. Alternatively, Bitcoin could fail to break higher, instead forming a lower high and slipping back under $115,700. In such a case, the next major support lies in the $110,000–$112,000 range, marked by the monthly fair value gap (FVG) at $111,955.

Presently, KillaXBT believes scenario one appears more likely as the market is holding bullish momentum, and with absent clear bearish signals, the analyst expects BTC to attempt higher highs in the coming days. However, traders should also expect BTC could briefly dip early in the week, particularly Monday or Tuesday, to clear overleveraged long positions before rallying.

In rounding off, the market expert states a sustained pattern of higher highs and higher lows on intraday charts would further validate the bullish outlook, while a failure to hold these levels could quickly shift sentiment toward the bearish alternative.

Bitcoin Price Overview

At the time of writing, Bitcoin is trading at $117,792 following a 1.11% gain in the last day.

Featured image from Pexels, chart from Tradingview