btc

When price approaches any support/resistance level you have 3 types of decisions:
1️⃣→ Bet on a breakout (Momentum).
2️⃣→ Bet on a bounce (Mean reversion).
3️⃣→ Take no trade.

As a Trader you have to get used to picking Option 3... a lot.
Before jumping into a trade it can be quite helpful to have a little bit of context.
Looking at the current Market Structure is a good place to start.
🐂Bullish Market Structure: higher highs and higher lows.🐻Bearish Market Structure: lower lows and lower highs.
Break in Market Structure
Just because price currently has Bullish Structure doesn't mean that it will just go up forever.
There are going to be times where the structure "breaks" and price can potentially turn around and start moving in another direction.

Just because a Lower High comes in does NOT mean the structure has broken yetThe structure is only broken when the Lower Low comes in.A Lower Low = the break of the most recent swing low that was formed.Just because a Higher Low comes in does NOT mean the structure has broken yet.The structure is only broken when the Higher High comes in.A Higher High = the breach of the most recent swing high that was formed.
Mean-Reverting Markets (ranging)
When the direction of price isn't clear because it just keeps reversing from the same highs/lows over and over again, this is a Mean Reverting Environment.
This type of environment is:
✅the BEST for trading reversals❌the WORST for trading breakouts
Momentum Markets (trending)
When the Market Structure of a move appears to be Bullish or Bearish for a consistently long duration, then you're looking at Trending Price Action.
Common characteristic of strong Trending Price Action:
Price hits a resistance and then effortlessly breaks through it, drifting to the next resistance.Then when it reaches the next level, it breaks through that again and the cycle continues.
This type of environment is:
✅the BEST for trading breakouts❌the WORST for trading reversals
📝Summary Lesson :
Every trade fits one of three decisions:
1️⃣→ Bet on a breakout (momentum).
2️⃣→ Bet on a bounce (mean reversion).
3️⃣→ Take no trade.
Your job as a Trader: identify the environment and choose the option
1. Market Structure
Bullish: higher highs + higher lowsBearish: lower lows + lower highsBreak of structure: confirmed only when price breaches the most recent swing high/low.
2. Market Environments
A. Momentum (Trending)
Price consistently breaks through levels and continues in one direction.✅ Best for breakouts❌ Worst for reversals
B. Mean-Reverting (Ranging)
Price repeatedly bounces between similar highs/lows.✅ Best for reversals
❌ Worst for breakouts#btc #bitcoin

Honestly, if you’ve opened the charts lately and thought “why is everything just bleeding?” — yeah, same.
As of early Feb 4, the market feels heavy. Not dramatic, not euphoric — just one of those uncomfortable, grind-down phases where sellers seem to be everywhere.

Bitcoin $BTC has been taking most of the heat. It slipped below the $73k–$74k area in some sessions, which is the lowest we’ve seen since late 2024. Depending on the hour, it’s been bouncing around the mid-$70ks to low-$80ks, but the damage is already done. A 5–10% move down might not sound insane in crypto terms, but when it happens fast — especially over a low-liquidity weekend — it hurts.
Liquidations piled up quickly. Billions got wiped, mostly long positions, and BTC was the main trigger. Once that domino starts falling, everything else follows.
Why now? It’s not just one thing.
The dollar’s been strong again, rate-cut expectations for 2026 are getting pushed back, and there’s a general “risk-off” mood across markets. You can see it outside crypto too — stocks shaky, metals catching bids, money moving into safer corners. Crypto usually feels that shift first and hardest.
Some analysts are throwing out scary numbers — extreme crash scenarios, even comparing this to past financial crises. Personally, I think those are worst-case stories, not the most likely outcome. At the same time, it’s hard to ignore how fast sentiment flipped. Fear indexes are deep in the red, and you can feel it on the timeline.
$ETH hasn’t been spared either. It’s been sliding around the $2.2k–$2.3k range after dropping hard in a short window. Solana’s probably the one people are watching most closely right now. Trading near $100 again is rough, especially after where it was not long ago. That level feels psychological — break it cleanly and things can get messy, hold it and maybe the bleeding slows.
Altcoins, as usual, are taking it worse than Bitcoin. That’s what happens when the market gets nervous — people sell risk first and ask questions later.
Still, it’s not all doom.
Institutional stuff hasn’t vanished. ETFs are still seeing activity, regulation talks are still moving, and big projects are still building. None of that saves you in the short term, but it matters when you zoom out.
Also worth saying: sentiment feels washed out. Historically, that’s not when markets top — it’s usually when they’re closer to resetting. That doesn’t mean we bounce tomorrow. It just means a lot of weak positions have already been forced out.
For me, this feels like one of those phases crypto always goes through — leverage gets cleared, expectations get humbled, and patience gets tested. Brutal if you’re overexposed. Manageable if you’re not.
Whether you’re buying slowly, sitting on your hands, or just watching from the sidelines, the key right now is not getting emotional. This market rewards people who survive the boring, ugly parts.
What are you doing — adding slowly, or waiting for the dust to settle first?

#btc #TrumpProCrypto #VitalikSells