Bitcoin Weekly Analysis – Structural Channel Breakdown

Hello Traders,

In today’s Bitcoin update we are focusing on the weekly timeframe, specifically the high time frame trading channel that has played a key role in guiding price action. We previously had a bullish wave count that pushed price above the channel, completing a wave 5 impulse to the upside. However, that breakout has now failed with price closing back below the channel resistance, indicating a trend shift and confirming a failed auction above the structural high.

Key Technical Points:

• Failed Breakout: Price closed back below the channel after completing the wave 5 impulse, signaling a trend reversal.
• Bearish Wave Count Begins: Price is now following a likely bearish wave structure with downside potential toward the key swing low at 33,530.
• Wave 2 Rejection Zone: As long as Bitcoin trades below the channel high, this region acts as resistance, and a wave 3 bearish expansion may be unfolding.

The breakdown from the channel high shifts sentiment and suggests a bearish market phase may be underway. This is especially critical on the weekly timeframe, where each candle represents significant market activity over a 7-day period. Patience will be essential as these moves take time to play out.

From a trading perspective, high time frame short positions near resistance can serve as a portfolio hedge, giving flexibility to buy much lower if the market dips into key support zones. The 33,530 swing low remains a vital level to watch—it could act as a major demand zone for future long opportunities, though that’s likely later in the year.