Bullish Breakout Stalls After Testing 70K Resistance
Over the past few sessions, we saw the anticipated bullish upside follow-through play out as expected. Buyers made a strong push that allowed us to clear the upside targets from my previous analysis in the 67,400 and 68,000 areas.
This thrust carried prices all the way into the key 70,000 resistance zone. For a moment, it seemed the bulls had enough firepower to push through this critical supply area and clear the way for a continuation up toward the 75,000 level.
However, the rally lost upside conviction after tapping the 70,200 area. We formed a short consolidation just below this resistance before rotating back to the downside. The market was unable to sustain upside momentum above the 70K level.
Fibonacci Support Holds... For Now
On the way down, the decline found support at a newly adjusted Fibonacci retracement level just below 70,000 in the 69,600 area. This managed to temporarily halt the pullback and stem further losses.
But overall, the price action has me questioning the bullish strength and conviction in this market. The inability to push through 70,200 and quickly losing ground back below 70K suggests there isn't enough sustained buying pressure for a true bullish continuation at this point.
Bears Regaining Some Control
With the pullback below 70K, the bears appear to be regaining some near-term technical control of the market. The failure to hold key breakout levels puts the onus back on the bulls to prove themselves.
For the uptrend to regain serious traction, we'll need to see a clear reclaim of the 70K zone. Anything less keeps the market in a neutral, volatile range with risks tilted toward the downside in the coming sessions.
While I hadn't anticipated the reversal from 70,2000, the market is giving me lingering doubts about the sustainability of this uptrend. The bulls had a chance to break through to greener pastures and couldn't make it stick. For now, I am shifting my stance toward a more neutral/bearish posture until the buyers can recapture the narrative.
