Bitcoin Trading Update: Key Levels Violated | By Lord MEDZ
2025-01-09
Category: None

Hey traders, it’s Lord MEDZ back with an update on Bitcoin (BTC/USDT). In my previous chart, I laid out a bullish case for Bitcoin, supported by the Wyckoff accumulation pattern and a strong breakout above key resistance zones. However, recent price action has raised some concerns, and it’s time to re-evaluate the situation.

What Just Happened?
IFVG (Imbalance/Fair Value Gap) Violation: See the daily chart below.

Bitcoin has retraced into the IFVG zone (red) on the daily timeframe, which was a critical area for bullish continuation. Instead of bouncing strongly, the price broke through this zone, invalidating the immediate bullish case.

Loss of Momentum:
The failure to hold this red zone indicates weakening buyer strength. With Bitcoin now trading around $93,240.59, it’s clear that sellers are stepping in near resistance levels. This could suggest a deeper retracement in the coming days.

Key Levels to Watch 
Immediate Resistance:
The breached IFVG zone now serves as resistance at $95,128 - $96,252. If Bitcoin is to regain bullish momentum, reclaiming this area is essential.

Support Levels:
Bitcoin is approaching a critical support zone near $74,081 - $65,622, as highlighted in the Wyckoff Accumulation range (blue zone).
This zone must hold to prevent a larger bearish move. A drop below $65,622 could lead to significant downside.

What’s Next?

Bearish Case:

If Bitcoin fails to reclaim the IFVG zone, we could see a continuation of the retracement toward $74,081 or even deeper into the accumulation zone.
Volume confirms bearish pressure, as seen in the breakdown from recent highs.

Bullish Case:

The Weekly Dealing Range (yellow) is still intact. If Bitcoin finds support within the accumulation zone and buyers step in, the bullish narrative can remain valid.
A strong bounce from $74,081 would be a great re-entry signal for long-term bulls.

Final Thoughts 
Although Bitcoin has violated some key areas on the daily chart, this doesn’t mean the macro bullish case is completely invalidated. However, we’re now in reaction mode rather than continuation mode. The next few days will be critical to see whether bulls can defend the accumulation zone or if sellers will take control.

Keep your risk in check and stay sharp! Lord MEDZ out.