Bitcoin: key levels to watch

There’s been a lot of chatter about last week’s price action being a bearish retest—but that couldn’t be further from the truth.

A true bearish retest happens when support is lost and then turns into resistance during a relief rally.

That didn’t happen.

If you check Bitcoin’s weekly chart, you’ll see it closed well above the critical Range Low support at $93,500, meaning support is still intact.

No major level was lost.

The Doji Candle: A Sign of Indecision

Bitcoin closed the week with a doji candle, which, as we mentioned on Monday, signals uncertainty in the market.

However, here’s where things get interesting:

If this week’s candle closes above last week’s, we’ll have one of the most bullish setups possible.

We’ve seen similar scenarios play out in the past, and both times, Bitcoin followed up with a massive rally to the upside.

But there’s one key condition: Bitcoin needs to close above last week’s candle to confirm this bullish setup.

What If It Doesn’t?

What happens if Bitcoin fails to close above last week’s candle?

What if it closes below the critical $93,500 support?

If that happens, it would mark the first break of Bitcoin’s bullish structure on the weekly timeframe. Even then, we could still see a relief rally back to $93,500 in the coming weeks, but reclaiming it as support might be an uphill battle.

If Bitcoin fails to reclaim $93,500 as support, the smart move is to sell into the rally, lock in profits, rotate into stablecoins, and then wait for re-entry. 

Our base case will be the $70k range.

Bitcoin spent 9 months consolidating in this zone, so it will likely provide strong support if it falls to that level.

That said, nothing is set in stone yet. We still have an entire week of price action ahead—let’s see how Bitcoin responds.

A Unique Perspective

Here’s a video from Raoul Pal on the nature of Bitcoin. He examined it from a macro perspective.

We found it helpful, maybe you will too.

Thank you for reading.

Did we miss anything? Or just want to say hey? We'd love to hear from you! You can

• 🐦 Find us on Twitter

• 💬 Holler on Linkedin

• 💌 Reply to this email

• 🚀 Partner with The Crypto Explorer 

And If you haven't already, make sure to sign up to receive the next issue in your inbox.

Catch you soon.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions.