empty
31.01.2025 07:38 PM
Analysis of Bitcoin through Smart money method

Hi, dear traders! Bitcoin has been trading sideways since November of last year. I have marked its borders between $90,928 and $108,272. Bitcoin could trade for an extended period within this range. The bears have been unable to apply significant pressure, causing Bitcoin to linger near the upper border of the range.

This image is no longer relevant

Key market observations

1. Deviations and liquidity sweeps

Bitcoin has formed two deviations near the lower border—a sign of liquidity sweeps within the range. These deviations often indicate a reversal in the opposite direction. Within sideways movement, the 50% and 100% levels of the range serve as key targets.

Besides, two red lines highlight liquidity sweeps from the last two structural swings, signaling a further rise. This rise did occur, but it ended near the upper border of the range.

2. Bearish order block & resistance

Another key element is the bearish order block that formed between December 16–18. Price retested this area on January 7, and now this order block acts as a strong resistance zone, alongside the upper border of the range.

Bitcoin's sharp rally last week broke through the order block, but the sideways channel remained intact. A deviation formed at the top, sweeping liquidity from the December 17 peak, followed by a pullback—as I predicted.

However, the current decline remains weak, even though Bitcoin has reached the midpoint of the range.

3. Bullish order block & potential retracement

The third key factor is the bullish order block, formed by a single Shooting Star candlestick on January 13.

As we know, no financial instrument or currency pair is obligated to return to order blocks or imbalances. However, from a technical viewpoint, it would be ideal if Bitcoin first revisited this order block before initiating a new rally (if one occurs).

Order blocks are manipulative price movements designed to sweep liquidity. Large players open knowingly losing positions to accumulate positions in the opposite direction and often retest the order block to exit at breakeven.

Bitcoin could soon retrace to the $94,000 level. Within the bullish order block, traders may look for buy setups on the 1-hour chart.

However, an order block is not an unachievable wall—a break below it would signal a structural shift, potentially sending Bitcoin into an extended downward move.

Market Sentiment & News Calendar

The news flow on Friday was weak, exerting no significant impact on Bitcoin's price.

Key US economic events:

14:45 UTC – US Manufacturing PMI

15:00 UTC – ISM Manufacturing PMI

On February 3, the economic calendar contains two major events, one of which is highly significant. The US economic calendar will have a moderate impact on the crypto market in the second half of Monday's session.

Forecast & trading recommendations on BTC/USD

Bitcoin reversed near the upper border of the range and inside the bearish order block.

I expect further declines in the near term, with targets at $99,000 and $94,000. The first target has already been reached. If Bitcoin falls to the second target, it will complete the retest of the lower order block, after which:

Bitcoin could break out of the range through the upper border.

The bullish order block could be invalidated, leading to a structural breakdown and an extended decline

A deviation has formed near the upper border of the range —which typically signals a liquidity grab before a move in the opposite direction.

Since major swing points are where many traders place their Stop Losses, large players utilize these liquidity levels for accumulation.

For now, bears have no obstacles on their way down, and they collected sufficient liquidity on January 20 to continue pushing Bitcoin lower.

Samir Klishi,
Analytical expert of InstaForex
© 2007-2025
Summary
Urgency
Analytic
Grigory Sokolov
Start trade
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Bitcoin in limbo

Bitcoin buyers appear to be somewhat confused, as the FOMO currently dominating the market could backfire on those trying to jump on the "last train", — which, in reality

Jakub Novak 15:34 2025-07-15 UTC+2

Crypto week

While Bitcoin and Ethereum are undergoing a correction and doing so rather effectively, lawmakers and cryptocurrency advocates in the United States are preparing for one of the most important weeks

Jakub Novak 11:19 2025-07-15 UTC+2

Trading Recommendations for the Cryptocurrency Market on July 15

Bitcoin has dropped from its all-time high of $123,000 and is currently trading at $117,000, which only increases its appeal. Ethereum has also fallen back below the 3,000-dollar level, after

Miroslaw Bawulski 09:31 2025-07-15 UTC+2

Bitcoin outpaces Amazon in terms of market cap

Bitcoin has reached a new all-time high near $122,000, surpassing Amazon in market capitalization. This event is undoubtedly a landmark moment in the history of cryptocurrencies and traditional finance

Jakub Novak 10:52 2025-07-14 UTC+2

Trading Recommendations for the Cryptocurrency Market on July 14

Bitcoin hit another all-time high above $122,000, continuing its winning streak. Ethereum has also strengthened and is trading above $3,000, but has not yet reached the all-time high. Bitcoin's rally

Miroslaw Bawulski 09:53 2025-07-14 UTC+2

Bitcoin Forecast for July 14, 2025

Bitcoin Bitcoin is showing extreme boldness amid the general market sentiment of risk aversion. However, if such sentiment continues, the upper limit of Bitcoin's growth also becomes visible — 125,190

Laurie Bailey 05:31 2025-07-14 UTC+2

Litecoin is attempting to test its nearest resistance level, Friday, July 11, 2025.

Litecoin, Friday, July 11, 2025. Litecoin managed to break through and close above its pivot level. Although there is potential for a correction, positive fundamental factors provide an opportunity

Arief Makmur 08:00 2025-07-11 UTC+2

Trading tips for crypto market on July 10 (North American session)

Bitcoin and Ethereum traded higher today during the European session, which indicates that yesterday's purchases were not a one-time event and that buyers are still active in the market. This

Miroslaw Bawulski 16:25 2025-07-10 UTC+2

Crypto market shows extremely low volatility

Bitcoin volatility has dropped to a historic low, while Bitcoin itself is trading within 2% of its all-time high. The lack of willingness to buy at current prices could become

Jakub Novak 13:46 2025-07-09 UTC+2

Crypto market resilient despite dollar volatility

BTC/USD is rising again today after yesterday's dip, overall maintaining its bullish momentum. Fundamentally, conditions continue to support BTC/USD growth in the medium term. The global economic and market landscape

Jurij Tolin 14:14 2025-07-08 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.