Bitcoin has been on the rise, but since the start of this week has been met with stiff resistance in the area around $65,000. At the time of writing (7:20 PM EST) Bitcoin is flirting with $65k currently at $64,949 after trading as high as $65,851 before giving back and retreating right to the area of resistance for the past few weeks. 

Bitcoin meets resistance at $65,000 after rallying 22.31% ($11,722) in just eighteen days, an impressive feat for an asset that is still inside a bearish trend.

In recent days, Bitcoin has experienced a notable surge, driven by growing optimism surrounding potential interest rate cuts. According to the CME's FedWatch tool, the odds of a substantial 50-basis point reduction in the Federal funds rate have surpassed those of a more conservative 25-basis point cut over the past two days.

Despite Bitcoin's recent gains of 3.18% daily and nearly 10% weekly, the leading cryptocurrency remains confined within a descending channel. This week's rally, while impressive, has only brought BTC to the channel's midpoint, a pattern that has defined price action for the past six months.

Today Bitcoin crashed right to our target of our good till canceled short trade that was triggered on Wednesday. 

Bitcoin's recent price action has reaffirmed its dominant downtrend, with the cryptocurrency touching a low of $57,721 today, slightly below Tuesday's crash bottom. The weekly chart is on the verge of forming a bearish engulfing pattern, as last week's 10% advance has been completely eroded.

Trend Analysis

The cryptocurrency market was caught off guard yesterday as Bitcoin experienced a sudden and significant 5.5% drop in price. What is particularly intriguing about this event is the conspicuous absence of explanations from the usual chorus of cryptocurrency reporters, analysts, and influencers.

It has been weeks since I have written any articles or issued any trades in BTC. It was not because I lost interest or has not been monitoring the markets, but simply because no apparent trend in either direction was visible, leaving me with no insights to act on, or even report on with confidence. That all changed Yesterday.

The Technique

At the start of the week, A market-wide sell-off ensued. It was the product of economic and geopolitical that came together to drag down nearly every tradable asset. The cascading decline was felt across sectors, causing a flood of liquidations as traders rushed to sell off their positions in one market to cover their losses elsewhere.

Bitcoin’s volatility increased in the month of July due to contradicting forces were added to the price equation of BTC. High profile liquidations bringing strong downside pressure came into the markets, adding large amounts of Bitcoin to the supply side.