Bitcoin Correction Offers Opportunity Before Potential Rally

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Bitcoin is currently trading around $87,151, in the middle of a healthy weekly retracement after reaching local highs. Price remains within the Ichimoku cloud (Span A at $89,519 and Span B at $79,240), indicating a neutral to slightly bullish phase, depending on whether buyers reclaim key levels in the coming weeks.

A break and sustained close above $89,000 would serve as confirmation of bullish momentum resuming. That level aligns with the top of the cloud and recent consolidation, making it a key pivot zone to watch.

Should price fail to reclaim that zone in the short term, the ideal long entry zone lies between $74,000 and $70,000, where:

A previous breakout level aligns with demand
The Ichimoku cloud thickens for dynamic support
A potential oversold signal could develop on the TSI
The Trend Strength Index (TSI) values support a pullback-to-buy thesis:
TSI(10): -0.47
TSI(20): -0.80

While both are in negative territory, they’re not deeply oversold yet, giving room for one more leg down before a strong reversal signal potentially emerges.
The ultimate bullish target remains at $109,000, which is the next significant swing extension zone.

Trade Setup Summary:
Breakout Confirmation: Close above $89,000 with follow-through
Buy Zone: $74,000 – $70,000 (demand zone + cloud + structure support)
Target: $109,000
Invalidation: Close below $69,000
Bias: Bullish continuation while holding $70,000

Bitcoin’s current consolidation follows the post-halving adjustment, where mining rewards have been reduced and market volatility tends to increase. Institutional interest remains high, with ETF inflows stabilizing and macroeconomic uncertainty supporting long-term crypto positioning. As long as real yields remain in check and risk appetite persists, BTC is fundamentally supported, aligning with the bullish continuation setup seen on the chart.

Disclaimer: This content is for educational and informational purposes only. It does not represent financial advice or a recommendation to buy or sell any financial instrument. Trading involves risk, and you should only trade with money you can afford to lose.

Disclaimer

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