The weekly chart for Bitcoin (BTC) is revealing a compelling technical setup, signaling an imminent significant price movement, according to Skew Analytics. The present chart configuration indicates a critical juncture, with an anticipated 11% move in the near future.
A recent candlestick pattern resembling a “tweezer” bottom is observed, with wicks touching down into a demand zone around $40,000. This zone serves as a crucial support level historically, where buying interest tends to emerge, suggesting potential upward pressure. However, the breach of the topside of the previous weekly open, particularly in the $44,000-$45,000 range, exposes a supply zone where sellers have historically intervened, potentially restricting upward movements.
In light of this setup, two primary scenarios are conceivable in the short term. In the bullish scenario, BTC could rebound from the $40,000 demand level, with the tweezer bottom indicating a potential floor. If buyers maintain control, breaking through the $44,000-$45,000 supply zone could lead to an 11% move toward the mid-$40K region, with a possible test of the $48,000 resistance.
Conversely, if the $40K level fails to act as support, a bearish scenario may unfold, with Bitcoin retreating and challenging lower support levels. This could result in an 11% move to the downside, potentially reaching the $36K zone, where new demand might materialize.
Recent discussions around inscriptions and high Bitcoin fees have highlighted the network’s strength but raised concerns about scalability and transaction costs. Despite these considerations, positive sentiment prevails regarding miner companies, indicating confidence in the sector’s profitability and long-term growth, even amid price consolidation.
Additionally, the contrasting growth dynamics between Solana and Ethereum’s perceived stagnation in the DeFi ecosystem could impact capital flows in the crypto market, potentially influencing Bitcoin’s trajectory.