Tying It All Together
Investors,
Bitcoin is trying to firm up, which will be a prerequisite for it to rally again.
The way I learned it, asset prices need to stop going down before they can go up.
And if we look at Bitcoin’s price structure recently, we can see that medium & long-term uptrend characteristics are intact, with short-term dynamics experiencing some slight concern with downtrend characteristics.
But maybe that’s starting to change, for the better…
First of all, Bitcoin is still using the AVWAP from the April 2025 lows as support.
That’s very constructive, indicating that all froth from this market has been erased, with the average buyer since April 7th being slightly in profit, at least for now.
Secondly, look at the production of highs & lows:
Those lower lows which formed on October 17th are now producing higher lows.
Yes, we still have one singular lower high, produced on October 27th, but I’m not convinced that this outweighs the prior series of higher highs.
I can’t look at this price action and lie to myself (or you) that it’s bullish price action.
But I can’t look at this price action and say it’s bearish either.
We’re in a purgatory, of sorts, which means that we need to dig deeper in order to understand market conditions and how to shape our bias, with data.
Here’s how I’m tying everything together right now…
Crypto-Specific Dynamics:
Regarding BTC, it’s important to highlight how the overhead resistance that I shared in advance worked effectively, specifically referring to the AVWAP from the highs: