Bitcoin has once again risen above its current trading range, putting the market at a critical point. While a break could open the door to further upside, analysts warn that a failure to move higher could lead to a sharp decline. If selling pressure develops at these highs, Bitcoin could return to the key support level around $62,800.
Back to its highest trading range
Bitcoin is moving to an all-time high, prompting analyst Lennaert Snyder to issue a cautious update on current market conditions. Snyder emphasizes his trading strategy: avoid long positions at the top of the range. Since the most logical and probable buying opportunities are found at the lowest range, entry at these high levels presents an unfavorable risk-to-reward ratio.
Instead of tracking the upside, the current technical setup suggests that the shorting scenario is much more attractive. Snyder is currently tracking three possible paths for today’s price action, each focusing on how Bitcoin will react to its top resistance.
If Bitcoin breaks down from its current position and misses the important market structure level at $69,383, it will indicate a change in momentum. In this case, Snyder intends to enter a short position targeting the “weak lows” of around $65,280.
Furthermore, there is liquidity to buy, which is still above the current price at $71,200 and $72,846. If Bitcoin moves higher to “sweep” these pools and trap bearish buyers, Snyder will wait for a breakout of the market structure (MSB) to confirm the move. This confirmation then serves as an entry point to short the asset to the same target of $65,280.
Bitcoin reaches the exact range of $70,500
In a recent technical update, crypto analyst Zord noted that Bitcoin has reached a High Range of around $70,500, a level previously identified in a recent market analysis. This precise touch confirms the current boundaries of the range and places the asset at a critical pivot point where the major future directional movement is likely to be decided.
The potential for an extended upside remains on the table, and Zord noted that a successful breakout of this resistance could eventually take BTC to a new all-time high or the $74,000 level. However, the analyst cautioned that despite being close to this high, a decisive break has not yet occurred.
Conversely, the risk of rejection at this upper resistance has significant negative consequences. If BTC fails to maintain its momentum here, the Zord expects an immediate retracement through the Mid-Range and eventually targets the Lower Range located at $62,800.
