Bitcoin Analysis for Today | Forexlive

Bitcoin Analysis for Today: tradeCompass Highlights Critical Levels Near $104,265

Today’s Bitcoin Futures (BTC) are trading at approximately $104,265, slightly below today’s Volume Weighted Average Price (VWAP) at $104,530, signaling mild intraday bearish momentum. However, since the trading session is still developing, this early bearish signal remains tentative.

tradeCompass Levels for May 12, 2025

Bullish Above: $104,735

• Positioned above today’s developing Value Area High (VAH) at $104,630.

• More importantly, above the third upper standard deviation of Friday’s VWAP, indicating significant bullish momentum if crossed.

Bullish Targets:

1. $105,200 – Below today’s second VWAP deviation, providing a cautious first profit-taking zone.

2. $105,540 – Just under today’s third VWAP deviation.

3. $108,200 – A more ambitious target assuming bullish continuation.

Bearish Below: $103,920

• Located below the first upper deviation of Friday’s VWAP.

• Below today’s Value Area Low (VAL) at $104,070, signaling potential bearish sentiment if breached.

Bearish Targets:

1. $103,590 – Near Friday’s VWAP, suggesting a moderate initial downside.

2. $103,140 – Just above Friday’s VAL.

3. $102,360 – Above Thursday’s VAH.

4. $101,850 – Near Thursday’s Point of Control (POC), where high volume indicates strong historical trading interest.

5. $100,450 – Just above Thursday’s VWAP, crucially close to the psychologically significant $100,000 level.

Understanding Volume Profile and VWAP in tradeCompass Analysis

Volume Profile:

Volume profile analysis helps traders visualize areas of significant buying and selling activity at specific price levels. Levels with high traded volume, known as “Points of Control” or “Value Areas,” often act as strong support or resistance due to the accumulated market interest. Traders monitor these areas carefully to predict price reversals or continuations.

VWAP (Volume Weighted Average Price):

VWAP represents the average price weighted by volume throughout the trading session. It’s a critical benchmark for institutional traders and is often used as a dynamic support or resistance level. Standard deviation bands around VWAP indicate normal trading ranges, providing actionable insights into potential price extremes. Crossing these bands can signal robust momentum and trend shifts.

Market Context: Revisiting the $100K Level

Bitcoin recently surpassed the major psychological level of $100,000. Historically, price tends to revisit significant milestones before confirming directional moves. Market makers utilize these levels to trigger stop orders, thereby increasing trading volatility. Consequently, despite the recent bullish breakout, a retest around $100K remains highly probable.

Medium-term sentiment is slightly bearish, suggesting possible consolidation or pullback before any sustained upward movement. However, the longer-term perspective still favors an eventual revisit of the all-time high near $110,150.

Practical Application of tradeCompass

Use the provided bullish and bearish thresholds strategically:

• Watch how price action unfolds near these key levels.

• Consider partial profit-taking at designated targets to manage risk effectively.

• Maintain flexibility in trading strategies, adapting to real-time market signals and volume indications.

Always manage your risk prudently, using tradeCompass as a directional guide complemented by your personalized trading tactics and timeframes.