Bitcoin‘s recent ascent, though seemingly a harbinger of newfound vigor, conceals within its folds a tale far more insidious. The thin veneer of downside liquidity and the stubbornness of support betray a market meticulously crafted to ensnare the eager bulls rather than reward them. This rally, ostentatious in its display, may well be less a recovery and more a sinister prelude to a crescendo of despair when sentiment inevitably turns.
Harmonizing the Mid- and Long-Term Bitcoin Vision
Mr. Wall Street, in his exhaustive dissection of technical and psychological intricacies, elucidated that his broader perspective on Bitcoin had crystallized a week prior, dispelling any ambiguity surrounding his mid and long-term stance. With these temporal horizons now impeccably defined, he turned his gaze to the short-term tableau, delineating the prevailing market behavior with the precision of a seasoned cartographer.
He reaffirmed that while his mid-term disposition on Bitcoin remains steeped in bearish predilections, the short-term structure has pivoted towards bullish inclinations. This shift was predicated on the paucity of downside liquidity, rendering it untenable for market makers to instigate the next significant descent. This disequilibrium bolstered the rationale for a transient upward respite.
Consequently, Mr. Wall Street positioned long trades around the Value Area Low between $80,000 and $84,000, anticipating a bounce that might later metamorphose into a bull trap. Shortly thereafter, Bitcoin dipped and successfully retested the $84,000 threshold, aligning with the weekly MA100, amidst a series of deceptive upward surges.
As foreseen, his long orders were executed as planned, leaving him entrenched in a position initiated at $84,550. The analyst intimated his intention to exit only within the $98,000-$104,000 corridor, where a Fair Value Gap converges with substantial liquidity, presenting an opportune juncture to harvest profits.
Maintaining Longs Amidst a Macro Bearish Thesis
Mr. Wall Street expounded that the retention of long positions does not herald a bullish metamorphosis on Bitcoin. The overarching panorama remains steeped in bearishness, with anticipations of the next pronounced downward trajectory towards the $64,000-$70,000 realm. In the immediacy, Bitcoin rests upon robust support while downside liquidity remains constrained, diminishing the likelihood of an abrupt continuation downward.
A more plausible scenario envisions market makers orchestrating a bullish maneuver to allure retail participation. As tardy buyers ensconce themselves in long positions, they unwittingly become exit liquidity, setting the stage for a more substantial downward thrust once ample liquidity is amassed.
He also posited that the $68,000-$74,000 zone had grown too anticipated to function as a true “maximum pain” area capable of resetting market structure. Ergo, the downside target was recalibrated to the $64,000-$70,000 range, with estimations that this zone might be attained by late Q1 or early Q2 of 2026. This demarcation represents an initial major objective rather than the ultimate nadir.
Recent price action exemplified these dynamics with striking clarity. Bitcoin’s precipitous ascent from $87,000 to $90,000, followed by a precipitous plunge to $85,000 within hours, precipitated widespread liquidations. Numerous traders, ensnared by the siren call of the upside, were swiftly entrapped, and spurious movements in both directions are likely to persist as liquidity is cultivated in anticipation of a more substantial downward thrust.
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2025-12-23 07:34