Why Bitcoin’s Technical Setup is Still Strong

Sep 18

In this analysis, I’ll discuss why the long-term outlook for Bitcoin remains bullish—even if the short-term moves seem unpredictable.

Here’s what's contained:
• What the descending channel really means
• How liquidity pockets can trigger massive price surges
• The crucial levels to watch next

Let’s dive in👇

Since March, Bitcoin has been trading in a descending channel (you can even call it a bull flag).

However, instead of just labeling it as a particular pattern, it is essential to understand what is happening in terms of price, volume, liquidity, etc.

Let's start at the very beginning:
After hitting its ATH above 70K in March, we saw big-time profit-taking.
This is normal. Logically, the volume spiked.

But what followed was crucial—lower highs have been forming since then. And with that comes something important…

Liquidity pockets!

Each lower high holds liquidity.
This means buying pressure is sitting at key levels waiting to be tapped.
And guess what? The most gigantic pool of liquidity sits right at and above the ATH.

But let's move on for a second and discuss what’s happening in this descending channel.

Based on volume, we can see a beautiful accumulation.
- Volume stays low overall
- Highest volume whenever Bitcoin touches the lower trendline
-> Accumulators are active

Here's the cool part.
Once Bitcoin reverses, each lower high could trigger a ripple effect when the time comes, sending Bitcoin higher and higher.

Like dominoes falling (upwards), the price could chase liquidity up to that critical 70K zone. And then💥

As a first target, we’ve got our eyes on 64.3K — representing the first liquidity pocket.
However, it is worth mentioning that this is a smaller one.
The actual fun starts at 68.5k.

Of course, short-term moves are hard to predict, especially with looming external factors like Fed decisions. Volatility can go crazy in the coming days.
And yeah, the price can go lower. But...

Long-term accumulation and liquidity patterns are building the case for a massive breakout.

Even if we trade lower or sideways for a while, the liquidity at each lower high is just waiting to be grabbed.

Key Take-Aways

• Bitcoin’s technical setup remains bullish and is very much alive.
  
• We see an ongoing accumulation with beautiful liquidity pockets.
  
• Don't get fooled by volatility and short-term moves.
  
• When the breakout comes, it will be explosive.