Bitcoin’s False Breakout: A Bullish Masterclass for Traders

Bitcoin is showcasing a classic example of a false breakout—a scenario that technical traders, especially ICT enthusiasts, admire for its clarity and precision. Yesterday, Bitcoin challenged the critical horizontal support at $91,400, breaking below it briefly, only to stage an impressive comeback by the end of the European session. This swift recovery, followed by a retest of the broken resistance-turned-support, highlights a well-executed bullish reversal.

After retesting this level, Bitcoin surged significantly higher, confirming the false breakout and reinforcing a long-term positive sentiment. This type of market manipulation is a textbook example of how price action can trap sellers below key levels, only to reverse aggressively in favor of buyers.

As it stands, Bitcoin is now trading firmly above the $91,400 support, which remains the pivotal level for the current bullish momentum. With the long-term trend intact, this false breakout provides a compelling signal to go long.

Key Takeaways:

• Support at $91,400: The critical horizontal level has proven its importance with this failed bearish attempt and subsequent surge.
• False Breakout Mechanics: A brief dip below the support flushed out weak hands, setting the stage for a significant upward move.
• Bullish Momentum Resumes: The recovery above the key support reinforces the long-term bullish sentiment.

Bitcoin’s current setup not only emphasizes the strength of its long-term uptrend but also provides a stellar learning example for traders looking to capitalize on false breakouts.

Source: https://www.axiory.com/analytics/technical-analysis/bitcoin-s-false-breakout-a-bullish-masterclass-for