Hello friends, and welcome back to AppleTree360 — your go-to blog and YouTube channel for clean, real-time market insights. It’s Sunday, May 18, 2025, and we’re diving into an exciting (and critical) moment on the Bitcoin daily chart.
Watch the full video analysis here: AppleTree360 YouTube Channel
A Boxed-In Battle: Bitcoin’s Flag-Like Setup
If you’ve been following AppleTree360 for a while, you already know we’ve been tracking a flag-like box consolidation forming on Bitcoin since mid-April. That’s more than a month — and every breakout from similar patterns in the past has led to explosive moves.
Today, we’re breaking out again. Yes, Bitcoin is pushing above the consolidation zone — but is it a real breakout, or just another bull trap?
Resistance Ahead: The 108k–109k Level Wall
Zooming out on the daily chart, we see a persistent resistance zone around 108–109K — a level Bitcoin has tested multiple times over the last few months. This is the third major attempt, and while it’s exciting, it’s also a point of caution.
Why? Because heavy resistance like this often leads to fake-outs unless followed by strong volume and follow-through.
Add to That: Moody’s Downgrade & Market Jitters
To add more weight to the uncertainty, Moody’s downgraded the U.S. credit rating after market close on last Friday. That news is already rattling futures, and it could influence Bitcoin and broader market sentiment starting Monday.
Short-Term Pop or Long-Term Launch?
Here’s the potential scenario:
- If Bitcoin clears 105K and holds above 109–110K, we could be in for a powerful run.
- But if it reverses after this breakout — especially from the 108–109K zone — we could be looking at a classic bull trap.
If the breakout holds, our Fibonacci extension suggests a short- to medium-term target around $130,000. That’s a solid upside if bulls stay in control.
Final Thoughts: Opportunity Meets Caution
The current Bitcoin setup is not a “buy and forget” moment. It’s a time for precision and patience. The risk-reward is attractive above 109–110K, but only if price confirms the breakout with strength and momentum.
So stay sharp, manage risk, and as always — trade the chart, not the noise.
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Thanks for reading. Stay informed, stay disciplined — and we’ll catch you in the next update.
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