“`html

Bitcoin is currently trading below a key point of control (POC) after facing rejection from a dynamic resistance level. The lower timeframe trend remains bearish, and traders should closely monitor its potential influence on higher timeframes.

Bitcoin’s Current Market Position

Following a rejection from its recent local high, Bitcoin has returned to a significant trading range. The price is now consolidating beneath the POC, signaling a short-term shift in sentiment. This movement aligns with the formation of a swing failure pattern and the activation of a bearish harmonic structure, both of which have contributed to the ongoing retracement. While this pullback has yet to trigger a high-timeframe breakdown, it reflects a cautious market sentiment that warrants attention.

Key Technical Points to Watch

  • Dynamic Resistance Remains Intact: Bitcoin has consistently failed to break through a key resistance trendline, maintaining a sequence of lower highs since April 23.
  • Price Below Point of Control: The cryptocurrency is consolidating below the volume-weighted POC. Acceptance at these levels could signal further downside movement within the trading range.
  • Lower Timeframe Trend Still Bearish: The structure of lower highs and lower lows persists on lower timeframes. If this trend continues, it could begin to influence higher timeframes as well.

Technical Analysis: Chart Insights

Bitcoin’s rejection from the April 23 local high occurred at the confluence of the POC and a bearish harmonic pattern. This rejection initiated a pullback, pushing the price back into a well-defined range. During this retracement, the value area high was lost, and Bitcoin is now consolidating just beneath the POC—a key level of high volume and prior market balance.

The prevailing trend remains bearish on lower timeframes, characterized by a consistent pattern of lower highs and lower lows. This structure is being guided by a dynamic resistance level that continues to cap upward momentum. Until this resistance is broken and the trend is invalidated, the short-term outlook remains cautious.

Behavior Around the Point of Control

Price action near the POC could provide important clues about Bitcoin’s next move:

  • If price remains below the POC: The market could rotate lower within the current trading range, potentially testing deeper levels of support.
  • If the POC is reclaimed: A higher low formation above the POC could indicate a shift back toward bullish momentum.

Future Price Expectations

As Bitcoin consolidates below the POC and dynamic resistance holds strong, the short-term trend remains tilted toward the downside. Continued rejection from these resistance levels may lead to a deeper rotation within the range.

On the other hand, a successful reclaim of the POC combined with the formation of a higher low could signal the start of a bullish recovery. For now, traders should watch how the lower-timeframe structure evolves and whether it begins to influence the broader market direction.

Stay informed about the latest developments in cryptocurrency trading and market trends.

“`

Post Views: 3