Hmm....
Looking at the chart following $BTC's recent sell-off:
We saw a continuous drift towards resistance, followed by the price hovering in a tight range near the lows. This is where my focus is currently fixed.
The events of last night don't look like just a random bounce.
The range lows were swept repeatedly; there were attempts to grab liquidity, yet the price kept reclaiming the range.
Then, we saw a breakout above the range high.
Now for the interesting part—the price didn't just reject immediately after crossing the high; it is attempting to establish support above that level.
This certainly isn't a confirmed reversal yet. However, based on the short-term structure, it serves as an early sign of strength.
My main question now is simple:
Can this strength drive the price up to the previous high?
That high, around $77.3K, remains a key level. If the current structure holds, we should see a push towards that liquidity zone.
But there is a crucial point to remember here.
I won't assume bullish confirmation just because the price touches $77.3K. It could face rejection there. Even if it breaks above the range high but fails to hold it, the entire move could simply be viewed as another liquidity sweep.
For me, the most critical level is $77K.
If the price can reclaim this level and hold it as support, the move back into the previous range becomes much more significant.
In that scenario, I would seriously consider the possibility of a local bottom and look for long positions.
However, we must also consider the alternative scenario.
Suppose the price sweeps the high but faces a strong rejection, or loses the current range high again. In that case, this bullish outlook would become quite plausible.
And under those circumstances, my plan for a $74K retest would still remain valid.
What I find most interesting here is that the market is currently behaving as if it is in a decision zone. There was a sharp sweep of the lows, a period of ranging, and then a break above the highs—the question now is whether this breakout will see genuine acceptance.
I don't want to jump to conclusions just yet.
Because a minor LTF (Low Time Frame) breakout can often look very convincing, only for the price action to turn out to be a mere liquidity grab.
So, for the time being, I am leaning towards a scenario where we reclaim and hold the $77K level.
Holding the $77K level is key.
If we fail to hold it, there is a strong possibility of retesting the $74K range high.
The market structure itself is what matters most here.
