Bitcoin is currently trading below the point of control after rejecting from a key dynamic resistance. The lower timeframe trend remains bearish, and its potential to influence higher timeframes is something traders should be mindful of moving forward.
Following a rejection from the local high, Bitcoin (BTC) has returned to a key trading range, where price is now consolidating beneath the point of control (POC). This move aligns with the development of a swing failure pattern and the activation of a bearish harmonic structure, both of which contributed to the ongoing retracement. While this pullback hasn’t triggered a high-timeframe breakdown yet, it reflects a short-term shift in sentiment and structure that warrants close attention.
Key technical points,
- Dynamic Resistance Remains Intact: Price has consistently failed to break through a key resistance trendline, maintaining a sequence of lower highs since the April 23rd high.
- Price Below Point of Control: Bitcoin is consolidating below the volume-weighted POC, and acceptance at these levels could open the door for further range rotation to the downside.
- Lower Timeframe Trend Still Bearish: The structure of lower highs and lower lows remains intact on low timeframes, which could begin influencing higher-timeframe direction if not invalidated.
Detailed analysis
Bitcoin’s rejection from the April 23 local high occurred at the confluence of the POC and a bearish harmonic pattern. This triggered a pullback that has returned price to a well-defined range. The value area high has been lost during this move, and price is now consolidating just beneath the POC, an area of high volume and prior balance.
A defining characteristic of the current trend is the consistent formation of lower highs and lower lows on the lower timeframes. This structure remains unbroken and is guided by a dynamic resistance level that continues to cap upward momentum. Until this trend is invalidated, the short-term outlook remains cautious.
Behavior around the POC may offer important clues on what’s next. If price remains accepted below this level, the market could rotate lower within the range to test deeper support. Alternatively, reclaiming the POC and forming a higher low could mark the first step toward reestablishing bullish structure.
What to expect in the coming price action
As Bitcoin consolidates below the POC and dynamic resistance holds, the short-term trend remains tilted to the downside. Continued rejection from overhead resistance may result in a deeper rotation within the range.
However, a reclaim of the POC along with a higher low could indicate a momentum shift back toward the bulls. For now, traders should closely monitor how the lower-timeframe structure evolves, and whether it begins to influence broader market direction.
