BITCOIN daily supply area Resistance, wait and buy 66-69k BitcoinCRYPTO:BTCUSDjazziomanBTCUSD Risky to short when above the 200ema, so just wait to rebuy if you think it has room to continue up. Don't be greedy... You can day trade it but for swing trading this is not an area to buy!!! In my previous video, Bitcoin was trading around $72,600. I explained that the trend was still bullish, but Bitcoin had already gained approximately 15% in four days. Since then, it has gained another 8%, bringing the total move to around 25%. Does that make Bitcoin bearish? No. However, the price has now reached the supply zone that I identified in my previous video. I explained that if Bitcoin reached this area, it would encounter major resistance. Now that we are inside that supply zone, I don’t believe this is a good place to buy. The further Bitcoin rises without a pullback, the less likely it becomes that the move will continue uninterrupted. After a 25% rally with almost no red days, the probability of a correction is increasing. I expect Bitcoin to eventually pull back toward the $66,000–$69,000 range: * Around $69,000 is the daily 200 EMA. * Around $66,000 is where the daily 20 and 50 EMAs are located. * The $66,000 area was also previous resistance, where Bitcoin formed two recent tops inAugust. Once that resistance was broken, Bitcoin quickly moved higher. If Bitcoin returns to that area and holds it as support, it could provide a much better buying opportunity than chasing the price inside the current supply zone. The RSI is also around 85, which shows that Bitcoin is extremely overbought. An RSI above 70 does not guarantee that the price will immediately fall, it can remain overbought and continue rising. However, it is still a warning sign. For example, when Bitcoin was trading around $117,000–$127,000 near its all-time high, the RSI was around 70. The price never returned to those highs afterward. That demonstrates why an RSI above 70 is generally a time to become cautious, avoid greed and consider waiting instead of buying. If the RSI cools down toward 40–50, it could create another buying opportunity. The strongest opportunities generally occur when the RSI falls below 30. When it reaches approximately 25 or lower, I look at other indicators for additional confirmation before entering the trade. In simple terms: * RSI above 70: warning zone; avoid chasing. * RSI around 40–50: possible opportunity after a pullback. * RSI below 30: potential buying zone, especially with confirmation from other indicators. Bitcoin’s 25% rally, the lack of red days, the supply zone and the RSI near 85 are all warning signs. Bitcoin rarely moves straight up indefinitely. Pullbacks and red days are normal, even during a bullish trend. That is why I expect a correction toward $66,000–$69,000. Another indicator generated a long signal today at 8:00 p.m. Eastern Time. That signal was not present yesterday. Although Bitcoin continued rising during the day, I expect Saturday’s daily candle could close red and potentially mark a short-term top. Historically, this indicator has sometimes acted like a contrarian signal. When it prints “short,” the current candle often falls, but the price may recover the next day and continue higher afterward. When it prints “long,” the current candle may rise, but the move can soon become exhausted and reverse. It does not work every time its accuracy may be around 70–75% but historically, its short signals have sometimes appeared near buying opportunities, while its long signals have appeared near selling opportunities. To summarize, Bitcoin remains bullish, but it is currently overextended and trading inside a major supply zone. I would not chase the price here. I would rather wait for a pullback toward $66,000–$69,000, allow the RSI to cool down and then look for confirmation before buying. What do you think? : )