Bitcoin Moving Towards $90,000 Magnet

Market Video Report: Bitcoin

Duration 23:24 mins.

Summary

Bitcoin is likely in a major trading range between $50,000 and its all-time high, transitioning from a prior strong bull trend. The market currently exhibits “always in long” behavior through a six-bar bull micro channel. Primary price targets include $90,000 and $100,000. Discussion of strategic approaches that favor Longs on the Daily chart.

Transcript

Hello everyone and welcome back to the weekly Bitcoin report. My name is Josep Capo and along with being an author and contributor here at Brooks Trading Course, I am a certified European financial advisor with a master’s degree in financial markets.

So here it is, the weekly chart. As you can see, the weekly chart has now built a one, two, three, four, five, six bar bull micro channel. What does it mean? Okay, so wait and see the major context before we can analyze or we can determine what this bull micro channel can mean. So first thing I want to mention is that we are thinking that we are in a major trading range where the high of the trading range is around the current all-time high and the lows of the trading range—the lower boundary of the trading range—is currently around $50,000.

We believe that we are in a major trading range because on the monthly chart—and you can check that on the previous Bitcoin report where we discussed the monthly chart—we were coming from a very strong bull trend from $16,000 or $17,000 up to $125,000. And we finally printed this one, two, three—one, two, and three—wedge top. And now we are doing this one leg and second leg. So whenever we have a very strong bull trend, the natural transition is from the bull trend into a trading range and not into a full reversal of the previous bull trend. This is why we believe that this is currently a major trading range.

All right. And what do you do in a trading range? Well, in a trading range, you look to buy low at the lower third. Let’s say that this is the lower third, middle third, and upper third. You look to sell high and you look to buy low. We didn’t know that we were in a trading range until the market became “always in short” here and did this bad breakout. So this was the moment I began to discuss in the Bitcoin reports that we were possibly in a major trading range.

And then this low, yes, was printed here, and when the market did this second bear breakout, what I have said is that I was expecting either to reverse from this breakout point and gap here or for the market to test the middle third of this range. This smaller range here was the main target of this bear trend. Why is the middle third a target? Well, I think that we can do this exercise now. We can mark all these ranges here: this one, this one, this one, this one, this one, and finally the latest one.

All these ranges mean that market participants are engaging—both bulls and bears. All right. Here it is obvious that only bulls are participating, for example. So when there is sideways action, it means that the market found a lot of traders willing to negotiate their contracts. They find these fair prices where they want to make business, and the middle of the trading ranges is normally—not always, but normally—the area where most participation has occurred. I mean, it is the price action way to determine where most participation has occurred. Of course, if you go more granular and use volume indicators, you can see exactly where the exact point of most volume and participation was. The point is that in price action, in a simple way, you can see that as well and you can be precise enough to make your scenarios and points in your analysis.

So these middle thirds of these ranges are like stops of the train; it is where the train tends to go. The market tends to go to historical stations. For example, here when the market went down, it tested first this one. Then the next station was—look at this tail—this one. The next station of this bear breakout was—look at this tail here. Right? And over and over. And sometimes, for example, when you don’t have references because the price is making all-time highs, well, it is not always based on historical price action participation, but future expectation. Like, where is the open interest test, where institutions believe the valuation is, or where the option structure of the positioning leads to where there will be more participation in the market. That’s where the market goes, actually.

So now, why am I telling you all of this? Well, of course because we are going upwards and we have two clear stations where the price can go. One is the one above, which also gives us a big round number—$90,000—which is also the middle of the middle third of this major range. All right, this is a major, major magnet. But there is one above that is also important: the $100,000, which is the most beautiful round number on the Bitcoin chart. And hence, psychologically, it tends to attract participation. Actually, one thing I said back in the days when Bitcoin was reaching the $100,000 level is that the market will gravitate for a long, long time around there. And look at what we have been doing. Okay. So, I think that $90,000 or $100,000 are the levels that the market at some point will gravitate towards.

Now, major trading range traders buy the lower third, sell the upper third, and take profits in the middle third. Markets in trading ranges tend to do a couple of legs to test the high or the upper third and tend to do a couple of legs down—one leg down, two legs down—to test the lower third. What comes after a couple of legs down normally is a couple of legs up. Okay, that’s why we have been saying, even when everyone was super bearish here, that we were expecting this year a move towards the $90,000 area in the form of a couple of legs up.

The answer you want is: are we now at this point where the price is going to go there? Is this the micro channel that will lead us to these targets of $90,000 and $100,000 in a couple of legs up?. Nobody knows. But what’s true is that the market has already initiated a move upwards. Actually, it is important because since roughly July 2025, the market has not been clearly in an “always in long” phase for a very long time, and now here is the first time the market does that. It is not easy to change a market. So whenever you see this change, at least what you expect is some resistance to immediately do another reversal, especially if on the left there is contextual support. If there was nothing and we see like the bears are really strong, then this “always in long” is usually a good thing to go against, but if you believe that you are in the lower third of a major range, then it is reasonable to expect that this will not go easily lower. So there is fundamental support that this might be a bull trend that will continue.

Okay. Certainties do not exist in the market, and that’s something that you have to accept, whether you’re listening to me or whether you are listening to the best analyst in the world; that’s something that doesn’t happen. Now, if you want to trade, if you want to find a trading opportunity, it is true that the only way you have to find opportunities is to do all this job of price action and analyzing the price.

How we can try to go for a long or a short trade, I will explain later on the daily chart because I think the daily chart shows us a bit more, zooming in on how we can structure our trading ideas. For trading a micro channel like this, always flipping into the long side, normally traders wait to buy a pullback; they will try to buy the low of a good bull bar or even the 50% retracement of this whole bull leg because that gives them a probability, risk, and reward equation that they can control. But I will also give more ideas on the daily chart on how you can do that.

Now, I look like I’m super bullish, but I am not. I think that the market might test this target—the $90,000 actually is a target that I am thinking we are going to test this year. I’ve been saying that even on those black days. So I will continue to think that this is the technical target. This one is the psychological target. I think the market is going there. But there is something important to note: here the market, instead of rejecting this bear breakout higher, rolled down and started to go sideways, which means that bears sold. Right, there are trapped bears there, but more importantly than trapped bears, what it means is that the price created an area of equilibrium down there.

Normally when that happens, the market will come back and take all these lows—this one, this one, and the lowest low—at some point; it is something that it can perfectly do. And of course, if there are no sellers willing to sell again, the market will naturally reject stronger, and that will give us more information and maybe more confidence into the long side—into the idea that the market will eventually test the upper third. I think the market will test the upper third of the major range because here there was a lot of participation too. So here we found a lot of negotiation; at some point these prices were traded by both bulls and bears, and I think that eventually we will also test all these highs. All right. So before that, the most immediate price action is telling us that we can go perfectly to the $90,000 area.

Now we are going to go to the daily chart and see that more granularly. But before going to the daily chart, I’ll announce that on the website there is already information on the Al Brooks price action live trading workshop that will take place in Macau from June 28th until July 1st. So if you don’t want to miss it or if you want to check the information, please go to the Brooks Trading Course website. You will find the link in the description of this YouTube video and in the blog section. You’ll find that article first, where there is the explanation of this event, and below you will find very interesting analysis from the other presenters or authors of the Brooks Trading Course website that will provide you with lots of different perspectives of the markets to help you fill your current gaps in understanding.

If you want to learn how to analyze and to trade independently using price action, I encourage you to do the Brooks Trading Course. It is a very low-cost course; it is the best price action course that you will find on the internet or wherever you go. I hold a master’s in financial markets; I have studied the best traders in the world, and after that I didn’t know how to read a chart. Even if I had a lot of knowledge and information that nowadays I use for my trading edge to keep consistently having an edge in the market, I didn’t know how to read the charts. So it was something that was missing and I found that in the Brooks Trading Course. If you want to be serious about trading, one way or the other you will need to understand charts and feel comfortable in front of them. So if you want to do that, you have available this wonderful course—it’s low-cost and it includes everything you need to become a professional trader.

Now, finally, the daily chart. On the daily chart, there are three lines. The blue line represents the breakout point of the bear flag in the weekly chart. And those black lines here and there represent this area of gap that we have seen in the weekly chart. And now currently we are pretty with that and now we are testing all these levels. What happens normally between these lines—an area where there has not been much trading, a gap area—is that the price normally moves fast through them. So it either rejects quickly or it penetrates fast. The market went to test these areas for the first time but did not reject quickly when it tested this blue line. So that gives me some information that, at least for now, I think the bulls are serious about this bull trend. I think that they have chances of continuing, even if this was a zone where someone like me will try to look for shorts. I would look for shorting and target the price going back to the middle station, right?. That is a trade I was looking for, but instead what I have been witnessing is that the price is accepting, the value perception is migrating higher, and the market is penetrating into this zone.

Of course, the price can still go down here and fail the bull trend. That is something that can happen—at least with a 40% chance probability. But I think the market will continue higher. And since this bearish move has not appeared and now the market is clearly “always in long,” then we are going to discuss the bull side of this possible trade. If I think that the market is going from a higher time frame to $90,000, then I have clearly here a bull leg and a clearly defined major higher low around the $70,000 area.

How do you trade a bull channel? The best way—the most effective strategy—is to wait for the market to print the bull flag and to buy the low of the bull flag, because 80% of attempts of breaking down a bull flag in a strong bull trend will fail. Then there is the 60% chance of this bull breakout of the bull trend leading to a measured move up at least of the size of the bull flag. I am supposing now that the market is creating a bull flag here. And of course, this will be a good idea too because you have potential targets above, right?. So I think that it could be a good idea to just trade the breakout of this high and even wait for follow-through; still you have room for the $90,000 area.

Another thing that traders do is buy bear bars, like for example buying this bear bar here. That’s something you can do. And the stop loss in this case is always the major higher low. As long as you can structure a 1:1 reward-to-risk ratio up to the $90,000 area and you have a reasonable stop loss. Now, if you have to buy the pullback, your stop loss is here. And if you want to buy the bull parallel—I did not measure this, but you can either look if there’s a 1:1 measured move between this high and this stop loss here, or you can tighten your stop loss there at the low of this pullback. You will have less probability of success but a better reward-to-risk ratio, which is always what happens. The higher the probability you want, the worse the reward-to-risk ratio, and the lower the probability, the better the reward-to-risk ratio. So this is how the trader’s equation works.

So I think that this is all I have for you today. Thank you so much for watching this video to the end. I hope you enjoyed. If you have any questions, please leave them below in the comment section. Also like and subscribe to the channel if you enjoyed the video. And please do not forget to visit our website, the Brooks Trading Course website. Have a wonderful Sunday and a good trading week ahead.

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