Daily Trading Analysis: A Detailed Breakdown of Market Momentum BTC 10th March 2025
Bitcoin began the day attempting to establish a new bullish structure by forming a higher low and a higher high. This initial movement suggested that buyers were stepping in to regain control after previous bearish pressure. However, upon testing the 50 EMA, a strong rejection wick formed, indicating that sellers were still dominant. Despite price making another attempt at bullish continuation by forming a higher low and higher high, it failed to close above the previous rejection wick. While price did close above the 50 EMA, this alone was not enough to confirm a structure shift, as a true reversal would require price to break and hold above key resistance levels.
30-Minute Analysis
Experienced traders understand that patience is key, especially when price action is forming close to market open. About two hours before the session started, Bitcoin appeared to be setting up for a potential reversal. However, the lack of a decisive break above the rejection wick raised doubts about the bullish momentum. At the official market open, Bitcoin faced strong resistance at the 50 EMA, leading to a sharp rejection and triggering a 6% decline from the opening price to 2:30 PM.
This drop was significant, as price breached the critical support level at $80.3K. When price revisited this level, it formed another strong rejection wick, which presented a solid shorting opportunity for traders following the trend. The market’s failure to reclaim this support level confirmed that sellers remained in control.
While Bitcoin did attempt a reversal later in the session, it was not strong enough to recover the losses fully, leading to a session close with a 4% decline. Post-market movements saw Bitcoin establish a new lower high and a lower low, reinforcing the short-term bearish sentiment. However, during the Asian session, a notable increase in buying volume pushed the price back upward. This surge could be attributed to traders believing Bitcoin had reached an oversold price range, prompting dip-buying interest.
Despite this short-term push, Bitcoin remains in a critical area. While it has managed to break through the last lower high, which could indicate a potential shift in structure, it is still struggling to break above the 50 EMA and a key resistance confluence zone. Until price decisively clears these levels, the market remains uncertain about a full-fledged bullish reversal.
Daily Analysis
On the daily timeframe, Bitcoin has faced a strong rejection at the $84K price level. This rejection suggests that Bitcoin is encountering significant selling pressure at this psychological level. For bullish traders to gain confidence in an upward continuation, price would need to fill the rejection wick on yesterday’s candle. This would indicate that buyers are absorbing selling pressure and regaining control.
A further bullish confirmation would be a break above the 200 EMA, followed by a successful hold or retest of that level. A strong daily close above the 200 EMA could signal the start of a larger bullish trend shift, encouraging more long positions.
However, until these conditions are met, short trades remain the more favorable opportunities. Bitcoin is still in a bearish market structure on the daily timeframe, as it continues to print lower lows while remaining below the 200 EMA. This suggests that, despite short-term fluctuations, the overall market direction is still leaning bearish.
Conclusion
While Bitcoin has shown some signs of a potential shift in market structure, the overall trend remains bearish. The strong rejection at the 50 EMA and the failure to hold above key levels reinforce the continued dominance of sellers. The recent price push during the Asian session indicates that buyers are stepping in, but a true bullish reversal requires more confirmation.
Traders should remain cautious and wait for a decisive break above resistance levels before considering long positions. Until Bitcoin can break and hold above the 50 EMA and 200 EMA on higher timeframes, short trades remain the more reliable strategy. For now, it is essential to watch how Bitcoin interacts with key resistance zones in the coming sessions to determine whether a trend reversal is truly underway.
