Bitcoin Experiences Bearish Shift After Reaching New All-Time High

Bitcoin experienced a massive bullish wave since September, marking a significant shift in market dynamics. In September, the market exhibited a Change of Character (ChoCh) following a test of the demand level at $51,683.0. Previous bearish order blocks leading to this zone were invalidated, signaling a reversal in market direction. A new bullish trendline emerged, breaking the bearish channel and driving a sharp price expansion that peaked near $100,000.0.

 

By late November, the bullish momentum began to wane, even as the price continued to climb. This shift led to the formation of a bullish channel, contrasting with the one-sided upward movement seen earlier in November. In December, Bitcoin reached a new all-time high of $108,364.0. However, the price has since dipped below the bullish channel, indicating growing seller dominance.

BTC Key Levels

Demand Levels: $99,800.0, $73,754.0, $60,268.0
Supply Levels: $108,364.0, $120,000.0, $130,000.0

Indicator Analysis

• Smoothed Heikin Ashi Candles:
  During the impulsive price surge in early November, the Smoothed Heikin Ashi candles displayed wide spacing beneath the custom candles with green hues, reflecting robust bullish momentum. Currently, the price has dropped below the Smoothed Heikin Ashi candles, with red hues dominating, signaling a shift in market sentiment toward bearish control.
• Awesome Oscillator:
  The Awesome Oscillator highlights a gradual decline in bullish momentum. The indicator now reflects increasing seller dominance, aligning with the price correction and reduced buying pressure.

Bitcoin’s recent pullback highlights a potential cooling-off phase after achieving record highs. Traders will monitor key demand levels for signs of renewed bullish activity or a deeper correction in the coming weeks.

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