Reason to trust
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Ad discliamer
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
Bitcoin is grappling with intensified volatility following a sharp selloff triggered by US President Donald Trump’s abrupt announcement of a sweeping 50% tariff on all EU imports starting June 1. The unexpected macroeconomic move sent shockwaves through assets, and Bitcoin was no exception, dropping aggressively from all-time highs near $111,800 to lows around $107,500 in a matter of hours.
Although there was a brief recovery towards $109,000, the ensuing price action now shows an intense battle between the bulls and bears, with technical analysis on the 1-hour candlestick timeframe showing the two ways Bitcoin can play out this week.
Bitcoin Compression Structure Between Fair Value Gaps
According to crypto analyst TehThomas, Bitcoin’s current price structure is defined by two opposing 1-hour fair value gaps (FVGs). The lower FVG zone identified by the analyst is around $107,500, which showed up during the rally towards $111,814 ATH and is now acting as the first significant reaction point post-rally.
The upper FVG range is between $109,800 and $110,700. This level, previously the base of a breakdown candle, flipped into strong resistance on Friday. Interestingly, a rejection was confirmed inside this upper FVG, which showed there were many sellers present in that zone.
Notably, the 1-hour chart shared by the analyst points to a deadlock scenario for the Bitcoin price. A breakout above or below the identified fair value gaps will likely define the directional bias for Bitcoin’s next major leg.
Bitcoin’s next impulsive move will likely come with volume confirmation, either with a bullish displacement above resistance or a bearish rejection that pushes the Bitcoin price toward a lower demand target.
Bullish And Bearish Scenarios For Bitcoin
Interestingly, since the analysis, the ensuing price action has been marked by Bitcoin’s failure to reclaim the upper FVG and more of a consolidation around the lower FVG at $107,500. This places the most significance around this level, as Bitcoin’s reaction here could either cause a rebound upwards or a significant price retracement.
For the bullish scenario, a bounce at the lower FVG will send the Bitcoin price towards the upper FVG. A sustained move above the upper FVG at $110,700 would indicate a bullish reclaim and might bring a new all-time high around $113,000 back into focus.
For the bearish scenario, especially with a clean loss of the $107,500 level, the path opens for a move toward $106,000. This level is aligned with a liquidity pool left behind from consolidation early last week. If the structure breaks downward below $106,000, sellers may seize control in the short term.
At the time of writing, Bitcoin was trading at $107,017.
Featured image from Unsplash, chart from TradingView
Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott’s dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.
Scott’s experience spans a number of industries outside of crypto including banking and investment. He has brought his vast experience from these industries into crypto, which allows him to understand even the most complex topics and break them down in a way that is easy for readers from all works of life to understand. Scott’s pieces have helped to break down cryptocurrency processes and how they work, as well as the underlying groundbreaking technology that makes them so important to everyday life.
With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.
Scott’s influence is not just limited to the countless discussions that his publications have sparked but also as a consultant for major projects in the space. He has consulted on issues ranging from crypto regulations to new technology deployment. Scott’s expertise also spans community building and contributes to a number of causes to further the development of the crypto industry.
Scott is an advocate for sustainable practices within the crypto industry and has championed discussions around green blockchain solutions. His ability to keep in line with market trends has made his work a favorite among crypto investors.
In his personal life, Scott is an avid traveler and his exposure to the world and various way of life has helped him to understand how important technologies like the blockchain and cryptocurrencies are. This has been key in his understanding of its global impact, as well as his ability to connect socio-economic developments to technological trends around the globe like no one else.
Scott is known for his work in community education to help people understand crypto technology and how its existence impacts their lives. He is a well-respected figure in his community, known for his work in helping to enlighten and inspire the next generation as they channel their energies into pressing issues. His work is a testament to his dedication and commitment to education and innovation, as well as the promotion of ethical practices in the rapidly developing world of cryptocurrencies.
Scott stands steady in the frontlines of the crypto revolution and is committed to helping to shape a future that promotes the development of technology in an ethical manner that translates to the benefit of all in the society.
Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
