Daily Trading Analysis: A Detailed Breakdown of Market Momentum BTC 18th March 2025
Bitcoin’s price action continues to evolve as it navigates key support and resistance levels. Yesterday, the market found temporary support at $82.8K before breaking lower to establish a new support zone at $82.5K. Despite an attempted rally, price failed to create a higher high and instead faced rejection at the 50 and 200 EMAs, forming a bearish engulfing candle. This setup presented a strong 2:1 risk-to-reward opportunity, with stop-loss placed above resistance and take-profit aligned accordingly.
30-Minute Analysis
At market open, Bitcoin rejected the EMA zone and sliced through the next support level, leading to the formation of a new lower low. However, towards the end of the session, a double-bottom pattern emerged, which traders recognized as a bullish reversal opportunity. This shift in momentum extended into the Asian session, where price began forming higher highs and higher lows, breaking above the 50 and 200 EMAs.
Despite this short-term bullish movement, price structure is not entirely clean. Many traders who entered at the double-bottom formation may now be looking to exit, raising the possibility of a reversal during the New York session. With major news events scheduled today, caution is advised as increased volatility could disrupt current price trends.
Daily Analysis
On the daily timeframe, Bitcoin remains trapped within the same price range it has held throughout the week. Volume is noticeably lower, suggesting that market participants may be awaiting key economic updates before committing to significant trades. An interesting rejection wick off the $81.1K level was followed by a retracement, possibly influenced by the double-bottom formation observed on the 30-minute chart. Should bearish momentum resume, the wick may be fully retraced, reinforcing further downside potential.
Summary
While short-term price action has shown bullish momentum, the overall market remains in consolidation. With major economic news on the horizon, traders should remain patient and allow the market to reveal its next move before executing new positions. Keeping an eye on key support and resistance levels, along with potential volatility from news events, will be critical for navigating today’s trading session effectively.
