Technical analysis by ydnldn about Symbol BTC: Buy recommendation (8/9/2025)

BTC/USDT Price Chart Analysis 1. Chart Type and Instrument The provided chart is a line chart that displays the price movement of the BTC/USDT instrument on the Binance exchange. The timeframe used is daily (1D), covering the period from approximately October of the previous year to August of the current year. 2. General Trend Overall, the BTC/USDT chart shows a very strong and sustained upward trend (uptrend) throughout the displayed period. * Phase 1 (October 2024 - March 2025): A significant uptrend occurred, with the price of Bitcoin rising from below $60,000 to reach its peak at around $120,000. During this period, there were phases of correction and consolidation (e.g., around March), but the main trend remained upward. * Phase 2 (April 2025 - August 2025): After the correction in March-April, the price resumed its upward trend. This rally brought the price back to the area of the previous peak. 3. Significant Support and Resistance Levels * Support: Significant support levels can be identified in a few areas: * Short-Term Support: The psychological level around $110,000, which served as a consolidation area before the price continued its climb. * Mid-Term Support: The level around $100,000, which previously acted as resistance and now has the potential to become strong support. * Long-Term Support: The area around $80,000, which was the base for the price recovery from the April correction. * Resistance: The most crucial resistance level right now is the area around $120,000. The current price, $116,822.78, is attempting to approach and break through this resistance level. This level represents the all-time high (ATH) or a new historical peak. 4. Important Price Patterns or Formations The chart shows a repeating pattern of price increases, where a strong upward movement is followed by a correction or consolidation, before continuing the rally. The most relevant event currently is that Bitcoin's price is retesting its historical peak level around $120,000. This movement indicates very strong bullish momentum. 5. Technical Indicators Although the chart is not equipped with technical indicators, the price action itself provides a clear signal. The price is currently trading near its historical peak, which shows buyer dominance. 6. Specific Reasons for Entry The BTC/USDT chart is at a critical juncture, attempting to break through the historical resistance level of approximately $120,000. There are two primary scenarios for an entry decision: * Scenario 1 (Confirmed Breakout - Bullish Entry): The reason to enter a long position is to wait for a valid breakout confirmation. If the price successfully breaks and holds (closes a daily candle) above the $120,000 level, this could be a very strong signal that the uptrend will continue to higher levels. This breakout would indicate that buying pressure is strong enough to overcome selling pressure at the resistance level, opening the way for a significant price increase. * Scenario 2 (Pullback - Safer Bullish Entry): Another option is to wait for the price to undergo a correction or a pullback to the nearest support level, for example, around $110,000 or $100,000. If these levels successfully hold the price and show signs of a bounce, this could be a safer entry point with a lower risk. 7. Risks and Watch-outs During Entry * Potential for Failed Breakout (False Breakout): The biggest risk is if the price fails to break through the resistance and instead experiences rejection. The price could rise slightly above $120,000 (as the chart shows) and then quickly reverse, forming a "false breakout." This would lead to losses for traders who entered a buy position without confirmation. * High Volatility at Resistance Area: Historical resistance areas like $120,000 tend to be zones of high volatility, where a fierce battle between buyers and sellers takes place. Price movements can be very erratic. * Divergence or Trend Exhaustion: Although this chart does not show indicators, it is important to watch out for signs of trend exhaustion, such as bearish divergence on momentum indicators (RSI, MACD), if you were to use them. Summary of Entry Decision: The entry decision at this time is highly dependent on how the price reacts to the $120,000 resistance level. It is not an opportune time to enter aggressively because the risk of a rejection is very high. The best strategy is to wait for confirmation. * Wait for a confirmed breakout: If the price breaks and holds above $120,000, consider entering a long position. * Wait for a re-test: If the price experiences a correction (pullback) to the nearest support level ($110,000 or $100,000) and shows signs of a bounce, this could also be a good entry point.