In this YouTube analysis, The Art of Crypto explains why the recent movements in Bitcoin are a pivotal market event. He first defines a "confirmed break of structure" on the daily chart, emphasizing that only a candle body closing below a prior swing low counts, while wicks alone are false breaks. He then maps out the internal and external liquidity zones, labeling sell‑side liquidity (SSL) beneath swing lows and arguing that the recent deep retracement to the 0.786 Fibonacci level has exhausted internal range liquidity, making the next bullish move more likely. The presenter identifies a key supply zone around $23,200 (the 0.705 Fib level) as a short‑entry target and outlines how traders should use Fibonacci retracements—particularly the 0.618‑0.786 "golden pocket"—to time long entries after a swing high forms. He stresses reading and reacting to market structure rather than holding static assumptions, and provides concrete trade‑management advice (entry, stop‑loss, profit‑taking). The analysis also covers the US Dollar Index (DXY), noting a historic monthly breakout that mirrors past crypto bull cycles, and suggests that a continued DXY decline would support further Bitcoin gains. Throughout, he promotes his AOC Academy program for aspiring traders. The video concludes with a call to comment "fib" to signal engagement and to watch a short DXY video for deeper insight.
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What happened on Bitcoin in the last couple of days has been absolutely huge. Not only did you get a confirmed break of structure on the daily chart for the first time since May, you also are in the process of breaking structure on daily chart again right now as we're speaking. Now this is absolutely huge, and I'm going to get into why that is and how you can trade this. The last time we got this, like the end of May this year, which is almost 3 months ago. Now you can see how this went. Where we got a confirmed breaker structure, but you know price just dumped. This time is going to be different, and I'm going to tell you exactly why and present you with the data that you need to make an informed decision about what trade to take to take advantage of this because this is a momentous event. Now we will also talk about the DXY. I don't know how many of you watched the DXY video that I posted about five days ago, but we predicted that this would be like super strong resistance, and I'm going to explain. Why the DXY even matters for Bitcoin, and why this is just huge. Like it's exciting times for the bulls. For the first time in practically like six months, we have broken structure on Bitcoin on the daily chart, which is a very high time frame to the upside. It's exciting. And besides that, we're also going to discuss the BTC CME futures gap because there's something very important you need to know. But you know, otherwise, this is exciting news. Let's get into it. So firstly, I'm going to refer you to this post that I made a while ago on Twitter. And if you haven't already followed me on Twitter, you. Missing out because I'm sharing posts like these all the time. That is @TheArtOfCrypto. So the way that you confirm a break of structure is you want the candle body close beneath that level in order to confirm a break of structure. Now you don't want this kind of thing because it is very easy for market makers and the smart money to just wick the price through the level and then actually just reverse the price. It's very easy to do that. The institutional traders They have a lot of money, so trust me when I say they can do this very easily just to take out stop losses and take out liquidity before bouncing the market in the opposite direction. Same thing goes for here. It does not matter how big the wick is, right? That does not play a role in confirming market structure. But as long as the body does not close below that level, that is a false break of structure. So hopefully this alone is going to help you out. For example, over here, when you just get the wick, that is not a confirmed break of structure yet. But the moment the body closes, that is a confirmed break of structure. Immediately some people people are going to ask, like, what is the time frame that is used to confirm this? The answer to that is simply the time frame that you are looking to trade on. For example, we are doing our analysis on the daily chart at the moment, and so we are using the daily chart to confirm this. So hence, this is a confirmed break of structure. This at the moment is not a confirmed break of structure because the candle has not closed. There is time for Bitcoin to like go down today and it would not be a confirmed break of structure. So now that you understand that, you understand how exciting this is, because the last few times that we got like quote-unquote breaks of structure, you can see these were like the only time we got break of structure was like here and here. That's basically it. Because the rest of these times, like over here, look at how many times the price was manipulated. Like it doesn't matter how long the wicks are, price immediate— like price still showed its true direction afterwards, which was down. So this time there is a couple of levels that I want to discuss. So firstly, let's discuss like why I think that this time is going to be different compared to the last time. Because honestly speaking, the key levels has been taken out. Now, what do I mean by key levels? Firstly, this price retrace here was a deep retrace. As you can see, it went all the way back to the 0.786. So this is generally a very good sign. When price comes into this zone and then breaks structure to the upside, it means that it was simply taking out sell-side liquidity within the internal range. Now, I want you to treat this This and this is the external range. Like if I go on the weekly chart, you'll see what I mean. It is simply one line from here to here and now to here. Now if I go back onto the daily chart, this becomes much more clearer. You can see how on the higher time frame, this is the swing points. This is the swing low, that's the swing high, and that's the new swing low. So these like this is the external range, and everything in between is just internal range liquidity. So I want you to visualize that beneath every stop loss, like beneath every swing low. Is sell-side liquidity. Now I'm just going to annotate that by SSL. So that's sell-side liquidity. It's very important to understand that because in order for the markets to go higher, it needs liquidity. Now I always like to say that liquidity is like the fuel in your car, or in this case, the markets are the car. Liquidity is what allows the market makers to reprice the markets higher or lower. So all of this is sell-side liquidity. Now you might immediately be asking, in this case, Hasn't all the liquidity except for the external range liquidity been taken out? The answer to that is absolutely. That's what makes this different, right? All the internal range liquidity, which means everyone who went long at any single one of these points, the people who were stupid enough not to take the profit— which, bonus tip for you guys, you want to take your profit always. Like, one of the biggest beginner mistakes that you can make, like it's in the first post of my advice for new traders, is Take your profits. If it's good enough to screenshot, it's good enough to take profit. A lot of you hold on to your position in greed and expect, you know, price to just keep doing its thing. But eventually price is going to circle back around. Why does price do that? To put it simply, it's the market makers needing to recuperate and mitigate their losses. Remember, every time that you win money, the market makers are paying you out of their own pocket. So they— it is in their best interest to not let you win. So What happens when there is an abundance of people who were greedy and did not take their profits throughout this whole uptrend here? Well, simply put, market makers just bring back the price aggressively and take out all these, like all these stop losses that are placed here. And so all these traders left with nothing, even though price of Bitcoin went up by about 30% at some point. So that's a quick lesson. Anyways, this is a deep retrace after taking out key levels such as all the sell-side liquidity within the internal range. So that is really, really bullish. So immediately we want to go onto the weekly chart and go a bit lower and see if there is other levels that price can take out. Now, I do not expect price to go back to 17,600 yet. It is because daily structure has shifted to the upside. Now, it is always fair to have assumptions going into the markets. Now, if there's one thing I've learned in my time as a trader is that you never want to predict what the markets are doing. You simply read and react. If there are any students from the AOC Academy watching this, you will understand full well what I mean by that. To the people who are not in the AOC Academy, Academy, which by the way, it is a 4-week program designed to get you from zero to profitable within the 4 weeks. So if that sounds like something interesting to you, I want you to sign up for the waitlist in the description box below when the second cohort opens up. Trust me, there were a lot of people that doubted this program before it started, but just in 2 weeks, 3 weeks, we've already gotten so much results for them, it's not even funny. But anyways, back to reading and reacting. Currently, market structure has told us what we need to know, which is that it's shifting bullish. So in this case, I will let go of my assumption assumptions that price is going to continue on lower to take out that external range in a swing point before, you know, potentially bouncing. So always, like, it's fair to have assumptions, but don't stick to those biases when things change. Now let's immediately look at a very key level that you need to understand in order to understand where you can potentially short from, or if you're already in a short, where can you cover? Let's say you shorted anywhere in this point and you haven't gotten liquidated yet, like, you want to try look for a rejection at the 0.705. Now that is going to come at this order block here. If I go on to the 4-hourly, you will see exactly what I mean. Now this is a supply zone and this is located at $23,200. When price gets into here, which is a 0.705 fib of this range here, which is going to provide very sufficient resistance, plus this is the first supply zone in, well, basically in this whole gap here that you can see there is zero price action. So price is likely going to just shoot through here come into the supply zone, get rejected, and then allow the smart money players, like the big players, to get into a position before they move the market higher. Now, a retrace always happens in the market. That's why you never need to FOMO, because here's the thing about the market makers— markets don't move straight up or straight down. It is in the market maker's best interest to confuse as many people as possible. But now I'm telling you, you know, you are going to retrace. Now, how do you determine where is a good area to get into if you were looking for a long heading into like the high $20Ks or maybe even the $30K area? Well, the way you determine that is you simply take your fib, right? Come over here, pull up your fib retracement tool, and currently we do not have a swing high formed yet. Now, what is a swing high? A swing high is simply the candle where the high of the wick of this candle, the middle candle, is taller than the 2 candles next to it. So when you get a swing high confirmed on the daily chart, or even the 4-hourly— currently I would recommend when you get a swing high confirmed on the daily chart, what I want you to do is I want you to draw a fib from that swing low over there to that swing high, wherever it forms. Now let's assume that it forms at the 0.705. When it forms at the 0.705, I want you to wait for a retrace into the golden pocket. Now, what is the golden pocket? It is basically the area between the 0.618 to the 0.786. This is known as the Fibonacci golden pocket, and you will find if you draw fibs on anywhere of your chart, you will find that price respects the golden pocket a lot. You will always find support in the golden pocket. In an upwards trend, and you will always find rejection, just like how over here you can see that this is the 0.705. You'll always find areas of resistance at the 0.705 in a downtrend. So currently you want to look to short this, come back into here, and then, you know, you're going to expand out of this trading range. Currently this trading range is from here to here. So hopefully this will give you a good picture of what to do, on what to expect, and how like to trade this, and how to position yourself into a long so that you can take advantage of this momentous event. If this has helped you in any way or form, I want you to comment down fib in the comment section below. It shows me who's the ones truly watching this video and getting the most value, and well, it just helps the YouTube algorithm out a lot. So I would highly, highly appreciate that. So that's the key levels that you need to know. So let me just briefly discuss the DXY and what you need to know. Firstly, DXY has just recently taken out this level right here on the monthly chart. Now, this swing high that was present on a monthly chart, which is really, really powerful because it's such a high time frame, has existed Right has not been taken out since 2002, and we have just taken that out. Now, why is it important that you know what the DXY does? Because whenever DXY is going down, DXY stands the US dollar currency index. It means that as this is going up, the US dollar is gaining strength. When this is going down, the US dollar is losing. To think of it simply, just think about how Bitcoin is valued against the US dollar. You can imagine that. As Bitcoin is going up, it also means that US dollar is probably going down. And that is what you saw in the 20, like the 2017 bull market right here in this period where the DXY was going down until 2018 where it was the peak of the crypto bull market. And then the DXY starts going up and then crypto starts going down, right? So DXY down, crypto up, DXY up, crypto down, right? Again, you see that once more in the May 20, like the March 2020 to like end of 2021, maybe like mid-2021 bull market. You can see DXY is going down, and that's why the crypto markets went into new all-time highs and put Bitcoin at $60,000. And then ever since the DXY has been going up again, that's when you see Bitcoin and crypto taking an absolute dump. And right now, the reason why this matters is because you have just taken out a key level of liquidity that you have not taken out since 2002, which means, oh, this is bullish because you are expecting a rejection on the DXY, at least for the foreseeable future. Or interest in the near future. And I highly recommend you check out this DXY video that I made. It is only 5 minutes long, but it will give you much more insight into what you need to know for the DXY that will absolutely help you when it comes to crypto trading.
