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The market doesn’t reward the fastest. It rewards the most prepared.
Here's a rough visualization of how I see the most likely scenarios playing out. If you average them, you'll get a feel for the broad concept I have. I can absolutely be wrong, but it's my take on things currently.
Note that I give the diagonal (dotted) trend lines some importance in controlling the price movements as well as the horizontal support levels.
This falls in alignment with my other post on the odds I give these Bitcoin scenarios.
$BTC Liquidation Heatmap BTC just sold off and is moving toward the high-intensity band below. The 3-day heatmap shows two dominant leverage clusters:
Overhead: dense short liquidity around $80,000 – $81,500 Below: a bright long-liquidation pocket near $77,000 – $77,500, with another stack lower around $75,500 – $76,000
The latest drop has not yet fully tagged the strongest lower band.
I currently give 70% odds the $BTC cycle bottom is in due to:
1. Huge breakout above 200-day MA and the downsloping trend line from cycle top. 2. High volume on the breakout. 3. Close time-proximity to a typical 12 month bear market low (it will be challenging to chop through all support levels below with just slightly over 1 month remaining for a low in a typical cycle).
I give 30% odds the bottom is NOT in because:
1. BTC formed a LOWER high (thus far). 2. No breakout above the 50-week MA. 3. The drop was only 54% from the highs.
If it breaks above $82.3K and holds it (lower high structure broken), as well as holding above the 50-week MA, I increase my odds to 80% chance the cycle low is.
This doesn’t mean we won’t get lower prices from this point forward. I think we’ll see a higher low in the coming few months.
Bluechip
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If you think the $BTC bottom is in, what is your reasoning?
On the other side, if you are not convinced yet, what would you need to see?
The 1H structure remains under pressure. Price has stayed below the recent swing high of $81,483, with a lower high forming near the $79,400 area. Multiple Order Blocks and an FVG sit overhead as resistance.
The 1H Chart flags a bearish scenario (65%): 1H is in a confirmed downtrend, with price below EMA20 and EMA50, supported by bearish MACD.
As long as price remains below the nearby FVG / EMA cluster, bounce attempts stay corrective. Watch whether $76,831 holds on the next test.
There’s a very interesting divergence happening between Bitcoin, Ethereum, TRON, and Cardano when we look at active addresses.
And I don’t like interpreting this metric in isolation.
With Bitcoin, for example, onchain activity has dropped significantly compared to previous major cycles, even while price remains far above historical levels.
But that doesn’t necessarily mean Bitcoin is being used less.
A big part of the explanation is probably holder behavior.
$BTC investors today tend to hold for longer, move coins less frequently, and increasingly use structures such as ETFs, custodians, exchanges, and Lightning.
In other words, Bitcoin may be evolving more toward a reserve asset, where onchain activity no longer grows at the same pace as price.
$ETH is showing a different picture.
Activity has accelerated again and is now close to 1 million active addresses, even with a large part of the ecosystem moving to L2s.
That tells me Ethereum remains extremely relevant as financial infrastructure.
TRON may be the most impressive case.
More than 4 million active addresses.
And here, the main driver seems much more related to payments and stablecoins, especially USDT, than simply to $TRX price speculation.
TRON has become a massive infrastructure layer for transferring digital dollars.
Cardano is the one that concerns me the most in these data.
Activity has fallen sharply since 2021 and is now at very low levels compared to the network’s own history.
Price can rise because of narratives, liquidity, and speculation.
But onchain activity tells us whether people are actually using the blockchain.
And right now, these four networks are telling very different stories.
The strongest leverage sits just overhead at $80.2k–$80.9k, while an almost equally dense long-liquidation cluster sits below at $76.2k–$76.8k. Price is boxed between two high-score liquidity magnets. Heatmap for the full picture. Radar for the exact levels.
Yesterday 6.44 billion dollars of $BTC options expired. The max pain level, where option buyers lose out, sat around 68,000. Bitcoin stayed near 79,000 and never went there.
People quote that level like it pulls the price. It does not.
The Realized Cap Impulse is very close to moving back into positive territory, putting the market at a critical point.
This is an important metric for understanding Bitcoin capital flows over longer timeframes, showing when onchain capital begins circulating more consistently again.
The good news is that, historically, when this metric remains positive for at least two weeks, it has often been a meaningful Bull Market signal. In other words, it suggests that new demand is entering the market and capital is once again supporting the broader market structure.
But there is an important warning.
The first recovery attempt has not always been enough. At certain points in the past, the Realized Cap Impulse acted almost like resistance. When that happened, the market generally followed one of two paths: it either formed a higher low before continuing its recovery, or experienced another leg lower, as happened in 2018.
That is why the next few days will be especially important from an onchain analysis perspective.
What we need to watch now is whether this recovery is confirmed by sustained capital flows and the metric holding above zero, or whether renewed selling pressure emerges and pushes it back below this threshold.
If it can remain positive, it would be a very constructive signal for the broader Bitcoin cycle.
🚨BRUTAL: The dollar WRECKING BALL is back, and it's bad news for gold and Bitcoin.
Warsh's hawkish turn repriced September hike odds to nearly 50%, sending the DXY surging back to its 100-day moving average.
A stronger dollar means weaker dollar hedges: gold( $XAUT is down 3.2% at its worst Jackson Hole day in a decade, and $BTC is still pinned near $78,000 after this week's dump.
Bitcoin's $78,100 magnet meets a $144M scheduled bid
1- Gamma flipped before the top Positive 80.7% of 14 days - flip hit Aug 27, 10:00 UTC. 2-A $144M dealer bid is scheduled Charm buys every day through Sep 8, peaking +$30.2M on Sep 3. 3- The hinge is $77,202 Spot is $489 above it. Hottest cluster: $78,122, z704 The regime flipped before the top Gamma was positive 80.7% of the last 14 days. At 10:00 UTC on Aug 27 - about seven hours before the $80,415 close - it flipped negative, and price rolled over within a day. The flip line says nothing about direction, only acceleration. A 1% push now meets -$15.2M of amplifying dealer flow; a 1% drop, -$10.6M. Two red candles since. Dealers must buy $144M by Sep 8 Charm is the hedge flow dealers cannot choose to skip as options decay. It prints +$12.8M per day today, building to a peak of +$30.2M on Thursday, Sep 3 - the session before the Sep 4 expiry settles. Not one negative day through Sep 8. After expiry the schedule collapses to $6-9M a day - the mechanical bid has a use-by The magnet above, the hinge below $78,122 - z 7.04 - is the hottest level on the Binance map, 0.66% above spot. The charm hinge sits at $77,202, just $489 below it. Below, $76,618 (z 5.28) is the first receiver, and the rail's deepest pocket, $72,107, is 7% down - tail context, not target.