Crypto Bulls Lost the Wheel (Lab Note #76)

(www.investorideas.com
Newswire) Today’s price action in Bitcoin and Ethereum confirms
something important: both markets have rolled over, and momentum is
shifting back to the downside. 

That’s why I’m sharing Wednesday’s Crypto Lab Note
with you today – it was published yesterday for my
Premium readers, but I want you to see how these setups play out before the
next major move unfolds.

Have a nice read!

Market Context

Crypto just flipped into a very “decision-heavy” zone.
What looked at first glance like a bullish continuation last week
quickly turned into a classic breakout trap, and now both BTC and ETH
are trading like the market is looking for lower liquidity pockets
before it can even think about another upside attempt. 

Bitcoin: What’s Really Going on Here? 

To frame today’s setup, let’s go back to the last
week’s quote:

“(…) bulls (…) pushed price into the red
resistance zone (as expected) and closed the day above prior highs and the red resistance line,
which now looks like a neckline of aninverse head and shoulders formation. 

(…) If Bitcoin holds above support (the neckline), it will
get continuation potential. BUT if loses it, the risk of a pullback
toward the gap around $90,000 will increase. (…)”

Looking at the daily chart, it’s pretty clear: the bulls had the
tools… but they didn’t deliver. 

Even though BTC managed to close Jan. 14 above the inverse head and
shoulders neckline and the 38.2% Fibonacci retracement, the very next
day didn’t bring the follow-through you’d expect in a
healthy breakout.

Instead, we got a black candle + hesitation + consolidation
and… that’s a big deal psychologically.

Why?

Because when price breaks out, then immediately stalls and starts
chopping instead of expanding higher, it usually means buyers are not
confident enough to defend the move aggressively. That hesitation
becomes an invitation and bears see it as: “Okay… if
you’re not pushing, we’re going to test you.” 

And that’s exactly what happened. 

That visible bullish weakness, combined with sell signals from the
indicators, brought bears back into the game. Within just one day,
they delivered a full invalidation of the earlier breakout above the
neckline. 

Technical meaning of that price action?

This is the market saying: “That breakout didn’t
stick.” And once a breakout gets invalidated, it often flips
from “bullish confirmation” into a trap setup, where late
buyers become forced sellers on the way down. 

Then things got worse. 

BTC dropped back below 90,000, closing the bullish gap from Jan. 5,
and that’s not just a random detail.

Why?

Closing that gap also killed the island reversal structure, which was
basically the bulls’ last clean technical ally. With that gone,
the chart loses one of its strongest bullish arguments. 

On top of that, Tuesday also closed below the lower border of the
black rising wedge, which increases the risk of deeper downside -
especially if bulls fail to reclaim the wedge quickly (in other words,
if they don’t invalidate yesterday’s breakdown). 

So, what’s next for BTC? 

If bulls can’t reverse this breakdown fast, bears will likely
aim for: 

support zone #1: the area around 61.8% Fibonacci retracement +
late-December 2025 lows 


support zone #2: where 78.6% Fibonacci retracement meets the bottom
of the former island reversal (December consolidation)

if that breaks, the door opens toward 80,000

And don’t forget: a confirmed breakdown from a wedge often
targets the measured move, which puts 78,214 area on the radar as well
(wedge height projection). 

Right now, momentum and structure are giving bears the
advantage. 

Ethereum: Even Worse from a Bullish Perspective 

ETH has been the weaker sibling for weeks, and it’s still
showing. 

Bulls didn’t even get close to the December highs (something we
already warned about), and that weakness quickly woke the bears up -
especially after Monday’s invalidation of the breakout above the
Jan. 6 high, followed by a drop below the green support line that had
been holding the bullish structure together. 

Now, we have a daily close below that line, which combined with sell
signals (still active), is basically signaling: “I’m not
ready to lead anything higher right now.” 

What’s next for ETH? 

The next likely bear target is the 2797-2757 zone, where December lows
meet the 61.8% Fibonacci retracement. 

If that area fails, the path opens toward the November low or even the
psychological 2500 area.

Lab Takeaway (…)

Watch for invalidation attempts: if BTC can reclaim the broken wedge,
bulls may still have a shot, but if not, expect bears to keep
pressing. 

For ETH, keep it simple: it’s still the weaker chart, so
it’s more likely to follow BTC lower.

If you’re holding swing positions: focus on the next support
zones and how price behaves there because that reaction will likely
set the tone for the next few days. 

On top of that,
today’sfull USD Index + Gold + Silver Lab Note(with all key levels + scenarios) is reserved for my
Premium readers. And the timing is not random: we’re sitting at
technical zones that can shape not only tomorrow’s session, but
the entire week ahead. 

If you don’t want to miss the next move while it’s being
built – not after it’s already happened – you can test Premium
Lab Notes for 7 days for free here: 

Premium Access:
Anna’s Trading Lab

Stay patient, respect the levels, and let the market show its hand.

Anna

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