Bitcoin <\/h2>\n\n\n\nThe Weekly<\/em> chart of Bitcoin <\/h3>\n\n\n\n![\"Weekly](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2025\/06\/20250606-BITCOIN-REPORT.png\" "\\"\\"")
<\/a>Weekly chart of Bitcoin on June 6th 2025 (Coinbase quotes)<\/figcaption><\/figure>\n\n\n\n<\/div>\n\n\n\n\n- This week’s chart is exhibiting a Cup formation that retail bears resemblance to the 2021 Cup and Handle pattern.<\/a><\/li>\n\n\n\n
- The right side of the cup was formed through a 7-bar bull micro channel, culminating in a test of the previous all-time high, labeled as the “previous range\u2019s high.”<\/li>\n\n\n\n
- Price then reversed down from that prior high, setting the stage for a potential Handle formation.<\/li>\n\n\n\n
- Bulls are aiming for a shallow, sideways Handle, which would preserve the integrity of the Cup and Handle setup and support a bullish breakout.<\/li>\n\n\n\n
- A deep Handle would invalidate the bullish structure, making current price action critical.<\/li>\n\n\n\n
- This week, price broke below last week’s low, disrupting the 7-bar bull channel, but then began to reverse upward from that low.<\/li>\n\n\n\n
- The weekly close in relation to last week\u2019s low will be important:<\/li>\n\n\n\n
- A close above last week\u2019s low would be a sign of strength for bulls.<\/li>\n\n\n\n
- A close below would increase bearish pressure, with lower closes being more concerning.<\/li>\n\n\n\n
- Overlap in this context (sideways trading) is interpreted as constructive for bulls, suggesting support below and a market in breakout mode.<\/li>\n\n\n\n
- Bulls are preparing to buy the bull breakout of the Handle.<\/li>\n\n\n\n
- On the bearish side, a breakout to the downside from this breakout mode (i.e., a “Low 2” short setup) is technically valid, especially since the market is at the top of a range.<\/li>\n\n\n\n
- Previously, a bull run was anticipated for Q2 (beginning April), which materialized. This was supported by both:<\/li>\n\n\n\n
- Technical factors: A weak bear breakout and a “High 3” setup at strong support.<\/li>\n\n\n\n
- Fundamental dynamics: Institutional quarterly rebalancing drove buying flows.<\/li>\n\n\n\n
- Looking ahead, presumably Q2 2025 is closing significantly higher than Q1, and institutions will become Bitcoin sellers in early Q3.<\/li>\n\n\n\n
- Price drops might not happen because of this selling pressure, but it does add to supply, so it’s important to keep an eye on how the market reacts in July.<\/li>\n\n\n\n
- In summary, bulls see a constructive Cup and Handle in progress, with the goal of breaking out from the Handle into a strong bull trend continuation.<\/li>\n<\/ul>\n\n\n\n
The Daily<\/em> chart of Bitcoin <\/h3>\n\n\n\n![\"Daily](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2025\/06\/20250606-BITCOIN-REPORT-1.png\" "\\"\\"")
<\/a>Daily chart of Bitcoin on June 6th 2025 (Coinbase quotes)<\/figcaption><\/figure>\n\n\n\n<\/div>\n\n\n\n\n- A classic Spike and Channel bull trend is visible on the daily chart.<\/li>\n\n\n\n
- However, zooming out reveals a prior bear trend, which introduces latent resistance and trapped long positions, making trading this bull channel less straightforward than it appears in our picture.<\/li>\n\n\n\n
- As is typical, 70% of bull channels break below their lower trend line, and that has occurred here.<\/li>\n\n\n\n
- Following a bear breakout of a bull channel, trading range behavior is expected 60% of the time, rather than a full bear reversal.<\/li>\n\n\n\n
- Bears have reached their first downside target, the most recent major higher low, formed just before the bull climax.<\/li>\n\n\n\n
- The bear breakout bar, which broke the channel, was a potential stop-entry short, but difficult to take due to its position just above the 30-day moving average, where many missed bulls were waiting to buy.<\/li>\n\n\n\n
- As a result, most traders will prefer to wait for a clearer lower high major trend reversal before committing to shorts.<\/li>\n\n\n\n
- Since the price reversed from the absolute all-time high, there have been three pushes down, each followed by sideways-to-up movement, a sign of bear weakness.<\/li>\n\n\n\n
- The High 1 buy setup was too early, coming after three pushes up and near the top of the previous channel, some consolidation was expected before buyers engaged again.<\/li>\n\n\n\n
- The High 2 was a better opportunity, forming at the 30-day average, but following a sharp bear breakout, another leg down was still possible.<\/li>\n\n\n\n
- The High 3 setup, which has not yet triggered, is potentially a reliable buying signal, ideally occurring near the $100,000 level with a strong bull reversal bar.<\/li>\n\n\n\n
- A bear breakout below the wedge bottom, which corresponds with this week\u2019s low, could lead to a test of the first pullback within the original spike and channel.<\/li>\n\n\n\n
- The overall pattern suggests that the market has entered a trading range and this condition is likely to persist for now.<\/li>\n\n\n\n
- Therefore, no sharp directional move is expected this week, overlapping bars and range-bound price action are more likely.<\/li>\n\n\n\n
- Best current strategies:<\/li>\n\n\n\n
- Look to buy a strong High 3 pattern setup if it forms.<\/li>\n\n\n\n
- For limit order traders, they will consider buying below this week\u2019s low.<\/li>\n\n\n\n
- Watch for selling opportunities around the $110,000 resistance, though that setup may not come this week.<\/li>\n\n\n\n
- Overall, the environment is challenging for stop order traders.<\/li>\n\n\n\n
- Participate in the comments section and share your vision! <\/li>\n<\/ul>\n\n\n\n
\n\n\n\nMarket analysis reports archive<\/h3>\n\n\n\n
<\/a><\/div>\n\n\n\n
- \n
- This week’s chart is exhibiting a Cup formation that retail bears resemblance to the 2021 Cup and Handle pattern.<\/a><\/li>\n\n\n\n
- The right side of the cup was formed through a 7-bar bull micro channel, culminating in a test of the previous all-time high, labeled as the “previous range\u2019s high.”<\/li>\n\n\n\n
- Price then reversed down from that prior high, setting the stage for a potential Handle formation.<\/li>\n\n\n\n
- Bulls are aiming for a shallow, sideways Handle, which would preserve the integrity of the Cup and Handle setup and support a bullish breakout.<\/li>\n\n\n\n
- A deep Handle would invalidate the bullish structure, making current price action critical.<\/li>\n\n\n\n
- This week, price broke below last week’s low, disrupting the 7-bar bull channel, but then began to reverse upward from that low.<\/li>\n\n\n\n
- The weekly close in relation to last week\u2019s low will be important:<\/li>\n\n\n\n
- A close above last week\u2019s low would be a sign of strength for bulls.<\/li>\n\n\n\n
- A close below would increase bearish pressure, with lower closes being more concerning.<\/li>\n\n\n\n
- Overlap in this context (sideways trading) is interpreted as constructive for bulls, suggesting support below and a market in breakout mode.<\/li>\n\n\n\n
- Bulls are preparing to buy the bull breakout of the Handle.<\/li>\n\n\n\n
- On the bearish side, a breakout to the downside from this breakout mode (i.e., a “Low 2” short setup) is technically valid, especially since the market is at the top of a range.<\/li>\n\n\n\n
- Previously, a bull run was anticipated for Q2 (beginning April), which materialized. This was supported by both:<\/li>\n\n\n\n
- Technical factors: A weak bear breakout and a “High 3” setup at strong support.<\/li>\n\n\n\n
- Fundamental dynamics: Institutional quarterly rebalancing drove buying flows.<\/li>\n\n\n\n
- Looking ahead, presumably Q2 2025 is closing significantly higher than Q1, and institutions will become Bitcoin sellers in early Q3.<\/li>\n\n\n\n
- Price drops might not happen because of this selling pressure, but it does add to supply, so it’s important to keep an eye on how the market reacts in July.<\/li>\n\n\n\n
- In summary, bulls see a constructive Cup and Handle in progress, with the goal of breaking out from the Handle into a strong bull trend continuation.<\/li>\n<\/ul>\n\n\n\n
The Daily<\/em> chart of Bitcoin <\/h3>\n\n\n\n
<\/a>Daily chart of Bitcoin on June 6th 2025 (Coinbase quotes)<\/figcaption><\/figure>\n\n\n\n <\/div>\n\n\n\n- \n
- A classic Spike and Channel bull trend is visible on the daily chart.<\/li>\n\n\n\n
- However, zooming out reveals a prior bear trend, which introduces latent resistance and trapped long positions, making trading this bull channel less straightforward than it appears in our picture.<\/li>\n\n\n\n
- As is typical, 70% of bull channels break below their lower trend line, and that has occurred here.<\/li>\n\n\n\n
- Following a bear breakout of a bull channel, trading range behavior is expected 60% of the time, rather than a full bear reversal.<\/li>\n\n\n\n
- Bears have reached their first downside target, the most recent major higher low, formed just before the bull climax.<\/li>\n\n\n\n
- The bear breakout bar, which broke the channel, was a potential stop-entry short, but difficult to take due to its position just above the 30-day moving average, where many missed bulls were waiting to buy.<\/li>\n\n\n\n
- As a result, most traders will prefer to wait for a clearer lower high major trend reversal before committing to shorts.<\/li>\n\n\n\n
- Since the price reversed from the absolute all-time high, there have been three pushes down, each followed by sideways-to-up movement, a sign of bear weakness.<\/li>\n\n\n\n
- The High 1 buy setup was too early, coming after three pushes up and near the top of the previous channel, some consolidation was expected before buyers engaged again.<\/li>\n\n\n\n
- The High 2 was a better opportunity, forming at the 30-day average, but following a sharp bear breakout, another leg down was still possible.<\/li>\n\n\n\n
- The High 3 setup, which has not yet triggered, is potentially a reliable buying signal, ideally occurring near the $100,000 level with a strong bull reversal bar.<\/li>\n\n\n\n
- A bear breakout below the wedge bottom, which corresponds with this week\u2019s low, could lead to a test of the first pullback within the original spike and channel.<\/li>\n\n\n\n
- The overall pattern suggests that the market has entered a trading range and this condition is likely to persist for now.<\/li>\n\n\n\n
- Therefore, no sharp directional move is expected this week, overlapping bars and range-bound price action are more likely.<\/li>\n\n\n\n
- Best current strategies:<\/li>\n\n\n\n
- Look to buy a strong High 3 pattern setup if it forms.<\/li>\n\n\n\n
- For limit order traders, they will consider buying below this week\u2019s low.<\/li>\n\n\n\n
- Watch for selling opportunities around the $110,000 resistance, though that setup may not come this week.<\/li>\n\n\n\n
- Overall, the environment is challenging for stop order traders.<\/li>\n\n\n\n
- Participate in the comments section and share your vision! <\/li>\n<\/ul>\n\n\n\n
\n\n\n\nMarket analysis reports archive<\/h3>\n\n\n\n