In the latest Weekly Market Review, 360 provides a comprehensive breakdown of Bitcoin’s price action, focusing on a descending channel formation that has dominated the past six months. This structure, according to 360, is often misunderstood as bearish, but he believes it is setting the stage for a bullish breakout.
Bitcoin is currently oscillating between an upper resistance level and a lower support line, with a median price point acting as a pivotal area of value. 360 explains that this “fair value” level represents an agreed-upon price by both buyers and sellers, and the presence of massive liquidity above this median could trigger a significant price move.
“Billions of dollars are waiting to be unlocked in orders that haven’t been taken yet,” 360 points out, referencing how liquidity is usually removed by institutional players before major market moves. However, the absence of distribution—characterized by mass selling—suggests this isn’t a typical market top. Instead, the consolidation pattern observed signals a period of reaccumulation, potentially leading to a sharp rise in Bitcoin’s price.
360 also highlights that the selling seen earlier in the market cycle was normal profit-taking after Bitcoin achieved a new high. More importantly, recent market behavior shows no signs of mass selling at the bottom, which indicates that the crypto asset is not in a distribution phase.
Additionally, 360 sheds light on a recent global liquidity event that affected all markets, not just crypto, stating that this was a leveraged liquidity wipeout rather than spot dumping. The Dow Jones and gold recently hit new all-time highs, further signaling bullish momentum across markets.
Looking ahead, 360 believes that once Bitcoin breaks through the current descending channel, the market will face a liquidity-driven explosion that could push prices into the $8,000 range. He cautions, however, that traders should remain vigilant during the upcoming Federal Open Market Committee (FOMC) meeting, as potential rate changes could momentarily impact the market.
For now, 360 advises traders to avoid excessive leverage and margin trading until the market clears this significant hurdle. With global markets looking bullish and Bitcoin showing signs of strength, the coming weeks could reveal the next major move.
“Watch, wait, and be ready,” 360 concludes.
