The Bulls Are In Control

Bitcoin has broken above the $118k Point of Control, and it would appear that bulls have retaken the reigns of this market. To my eye, this looks like an important polarity shift back into an uptrend.

G’day Folks,

What a difference a few green candles can make.

Over the last three newsletter editions, we have talked extensively about the critical price lines which would likely define the next major trend. We used a combination of the onchain supply distribution, technical volume profiles, futures liquidation levels, and options pricing to map this scenario out.

My base case was that the onus was on the bears to prove they had control of this market, and as far as I am concerned, they have thus far failed to take out even the first line of defence.

I also flagged that a clean break above $118k was a key zone to watch, because if cleared, the odds of the next major move being a bullish one would have meaningfully increased.

Bitcoin is currently trading above $120k, putting it above the highest point of control, and putting the bear case firmly on the back-foot.

In this edition, I will analyse the underlying structure of this rally, so we can better understand which components of the market were driving the rally, whether it is likely we stick the landing, and what upside price levels I have my eye on from here.