"Is the retail shakeout over?"...Bitcoin, no rally if it can't break 'here'

▲ Bitcoin (BTC)/ChatGPT generated image

As Bitcoin (BTC) quickly recovered after falling below a key support level, market analysis suggests that the recent decline was not a full-fledged bearish reversal but rather a 'fake breakout'. This is interpreted as a move to prepare for the next upward trend, having shaken out weak buying interest and excessive leveraged positions, while the high-dimensional time frame market structure remains intact.

According to NewsBTC on May 26 (local time), cryptocurrency analyst Cryptic Trades diagnosed that Bitcoin's recent price movement showed a structure of temporarily breaking out of a crucial high-dimensional time frame support zone and then recovering. He analyzed that this movement is similar to the bottom structure formed in April 2025, and is closer to a market movement to clear out excessive leveraged positions rather than a collapse targeting long-term investors.

Cryptic Trades viewed this liquidity sweep as a process to create a structural rebound after triggering stop-loss orders for long positions. He explained that he is observing market movements over the next few days to identify the final key price levels of interest before gradually closing out active hedge positions.

However, even though Bitcoin has reclaimed the high-dimensional time frame support zone, the uptrend is not fully confirmed. According to the article, Bitcoin has not yet surpassed the daily bull market support band located around $78,500. This zone has acted as a strong reversal area in recent months and is considered a key resistance level that buying pressure must break through to prove its true strength.

Cryptic Trades believes that if Bitcoin reclaims $78,500, the short-term time frame outlook could lean entirely bullish. The assessment that the recent decline was a tactical fake breakout rather than a deeper correction could also gain more traction after this price level is recovered. He is currently maintaining a cautious bullish stance, monitoring whether the upward trend continues for longer.

Another analyst, Lourenço VS, stated that his proprietary indicator has maintained a stable trend after issuing a buy signal. He explained that the indicator is designed not to get caught up in volatile market conditions prone to false signals, and that he is maintaining his position even amidst brief market fluctuations.

Lourenço VS also noted that the weekly candle closed above the middle Bollinger Band. While some in the market are comparing the current situation to the spring and summer market of 2022, he pointed out that such conditions did not appear then, making the comparison itself flawed. The fact that the 3-day candles continue to close above the key bull market support band despite recent price retracements and volatility is presented as evidence that the underlying trend still leans upward.

Bitcoin showed a quick recovery after breaking below a key support level, but it still faces the final hurdle of breaking through the $78,500 resistance. The short-term direction of the market will be divided into the end of a fake breakout and a signal for further upside, depending on whether this zone is reclaimed.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*