Daily Trading Analysis: A Detailed Breakdown of Market Momentum BTC 26th March 2025
30-Minute Analysis
Following on from yesterday’s market action, Bitcoin’s price action on the 30-minute chart revealed a clear double top reversal pattern during pre-market trading hours. This pattern was confirmed as price broke below the neckline just before the New York session opened, acting as a catalyst for the sharp downside move. Once the market opened, selling pressure intensified, driving price lower throughout the session.
BTC broke through multiple key levels during this decline. It first pierced below the descending daily trendline, then sliced through the 200 EMA, eventually breaching the key support zone at 86.3K. Sellers remained in control until the latter part of the session when price found support at the 85.8K level. This rejection fueled a late-day bounce, allowing BTC to reclaim both the 200 EMA and the descending trendline before the session closed.
During the Asia session, BTC retraced slightly back toward the 200 EMA, where it found support. A bullish engulfing candle followed, alongside a higher low formation, signaling a strong potential trade setup for the bulls. This setup led to a decisive move back up toward 87.6K, where price is currently facing resistance. Notably, the 50 EMA is now acting as a short-term support level, adding further significance to this region.
Daily Analysis
On the daily timeframe, market structure remains largely unchanged. BTC printed another long-legged doji candle, mirroring the previous sessions. This signals continued indecision between buyers and sellers, as reflected in the extended rejection wicks on both ends of the candle. Volume remains above the average, reinforcing the idea that traders are actively engaging in the market but with no clear directional bias at the moment.
Summary
Bitcoin’s price action continues to reflect market uncertainty, as seen in the repeated doji formations on the daily chart. While the 30-minute timeframe provided a clear bearish setup early in the NY session, a strong recovery into the close and bullish follow-through in Asia suggests potential for further upside. However, with price now facing resistance at 87.6K, traders should watch for confirmation of a breakout or rejection in this area. Market participants remain divided, and volume levels indicate heightened engagement, making the next moves crucial in determining Bitcoin’s short-term direction.
