The monthly structure in 2026 looks very similar to the period near the bottom at the end of 2022.
Back then, the movement was also like this: consolidation, narrowing, and then a bullish candle to confirm the direction.
If it were to be fully replicated, the current position is roughly equivalent to that area at the end of 2022—just coming out of the bottom, but the market still does not fully believe it.
On Tuesday, small business confidence and consumer credit; on Thursday, inflation and employment data; on Friday, the CPI that will decide market sentiment.
Several key data releases are concentrated in this week, with a long weekend in between.
Volatility on Thursday and Friday may be greater than usual.
Many people are looking at the price, but what really determines the direction is this chart.
WALCL started in 2022 with QT, and kept shrinking to 6.6 trillion, pulling out 2.4 trillion in liquidity. BTC fell from 69K to 15K.
Now QT has officially ended, and the direction has reversed. The Fed has started expanding its balance sheet again, adding nearly 60 billion in a single week last week.
The same signal last appeared in 2020, and what happened after that needs no explanation.
Historically, this level is often not a good buying point, but it is not a selling point either. It is a time to reduce positions, adjust the structure, and let profits run.
Wait until it climbs above 30 before making a move. No rush now.
But who is defending it, and why they are defending it, may be more important than whether it is being defended.
If whales are really supporting the price, it won't stay sideways at this level for too long. Real price support would actively push it upward, rather than placing orders and waiting for people to buy.
This kind of sideways movement now looks more like waiting for someone else to make the first move.
50 billion versus 20 billion. The amount of short positions that would be liquidated and the amount of long positions that would be liquidated are not even on the same level.
If the price is pushed up, 5 billion gets wiped out. If it is dumped downward, 20 billion gets wiped out.
The direction with the larger liquidation amount is more attractive. This structure is already on the table.
73K is indeed possible to catch, but the premise is that it actually reaches that level.
Right now the price is still hovering around 80K, so looking directly at 73K may be a bit optimistic. There are several support levels in between that it would have to break through, and it may not be able to drop that deeply all at once.
I tend to first watch the reaction around 76-77K, since that is closer than 73K and also more important.