Bitcoin Moving Towards $90,000 Magnet - May 9, 2026

Added: 2026-05-17

[00:00:00]Hello everyone, and welcome back to the weekly Bitcoin report.

[00:00:05]My name is Joseph Capo, and along with being an author and contributor here at the Brooks Trading Course, I am a certified European Financial Advisor with a master's degree in financial markets.

[00:00:18]So, here it is the weekly chart.

[00:00:21]As you can see, the weekly chart has now built a 1 2 3 4 5 6 bull micro channel.

[00:00:31]What does it means?

[00:00:33]Okay, so wait and see the major context before we can analyze or we can determine what this bull micro channel can mean.

[00:00:44]So, first thing I want to mention is that we are thinking that we are in a major trading range, where the high of the trading range it is around the current all-time high, and the lows of the trading range, the lower boundary of the trading range, it is currently around $50,000.

[00:01:06]We believe that we are in a major trading range because on the monthly chart, and you can check that on the previous Bitcoin report, where we discussed the monthly chart.

[00:01:17]So, we were coming from a very strong bull trend from 16 or 17,000 dollars up to the 125,000 dollars, and we finally printed this 1 2 3 1 2 and 3 wedge top.

[00:01:39]And now, we are doing this one leg and second leg.

[00:01:45]So, whenever we have a very strong bull trend, the natural transition is from the bull trend into a trading range, and not into a full reversal of the bull trend of the previous bull trend.

[00:02:03]This is why we believe that this is currently major trading range.

[00:02:10]All right.

[00:02:12]And what do you do in a trading range?

[00:02:15]Well, in a trading range you look to buy low at the lower third.

[00:02:21]Let's say that this is the lower third, middle third and upper third you look to sell high and you look to buy low.

[00:02:30]High, we didn't know that we were in trading range until the market became here.

[00:02:36]Always in short and did this bear breakout. So, this was the moment I began to discuss in the Bitcoin reports that we were possibly in a major trading range.

[00:02:53]And um and then this low, yes, was printed here and when the market did this second bear breakout, what I have said is that I was expecting either to reverse from this breakout point and gap here or for the market to test the middle third of this range.

[00:03:21]This is a smaller range here that this was the target, the main target of this bear trend.

[00:03:30]Why is the middle third a target?

[00:03:34]Well, I think that we can do this exercise now. We can mark all these ranges.

[00:03:41]Yeah.

[00:03:43]This one, this one, this one, this one, this one and finally the latest one.

[00:03:55]All these ranges means that market participants are engaging both bulls and bears.

[00:04:02]All right? Here it's obviously that only bulls are participating, for example.

[00:04:08]So, when there is sideways action, it means that the market found a lot of traders willing to negotiate their contracts.

[00:04:19]They uh find these like fair prices, like they want to make business here.

[00:04:27]And in the middle of the trading ranges, is normally, not always, but is normally the area where most participation has occurred. I mean, it is the price action way to determine where most participation have has been occurred. Of course, if you go more granular and use volume indicators, you can see exactly where is the where is the exact point where most volume and most participation there was.

[00:05:07]The point is that in price action, in a simple way, you can see that as well.

[00:05:13]And you can be precise enough to um to make your uh scenarios and your points into your analysis. So, this middle third of these ranges are like the stops of the train. Like, it is where the train tends to go.

[00:05:35]So, the market tends to go to historical um stations.

[00:05:42]For example, here when the market went down, it test first.

[00:05:47]This one, then the next station was look at this tail, this one.

[00:05:54]The next station of this bear breaker was look at this tail.

[00:05:58]Yeah.

[00:05:59]Right on over and over. And sometimes, like for example, when you don't have references because the price is making all-time highs, well, uh maybe and not only that, but all the time it is not always based on historical uh price action uh participation, but uh due to expectation, like where is the open interest, where institutions believe that the valuation is, or where the option uh structure of the positioning uh leads to where will be more participation in the market. That's where the market goes, actually.

[00:06:37]So, now, why I'm telling you all of this?

[00:06:42]Well, of course, because we are going upwards and we have two clear stations where the price can go.

[00:06:53]One is the one above, which also gives us a big round number, which is $90,000, which is also the middle of the middle third of these major range.

[00:07:09]All right?

[00:07:11]This is a major major magnet. But, there is one above that is also important, the $100,000, which is the big the the most beautiful big round number that is on the chart on the big Bitcoin chart and hence psychologically, it tends to attract participation. Actually, one thing I have said back in the days when Bitcoin was reaching the $100,000 level, it is that the market will gravitate for a long, long time around around there.

[00:07:47]And look at what we have been doing.

[00:07:49]Okay, so I think that 90,000 or 100,000 dollars are the levels that the market at some point will gravitate towards.

[00:08:00]Now, major trading range, traders buy lower third, sell upper third, and they take profits in the in the middle third.

[00:08:10]Markets in trading ranges tends to do a couple of legs to test the high of the upper third of the trading range, and tends to do a couple of legs down, one leg down, two legs down to test the the lower third.

[00:08:26]What comes after a couple of legs down?

[00:08:30]Normally comes a couple of legs up.

[00:08:34]Okay, that's why we have been saying that even when everyone was super bearish here, that we were expecting this year a move towards the 90,000 dollar area in the form of a couple of legs up.

[00:08:50]Now, the the answer you want, it is are we now in this in this point where the price is going to go there?

[00:09:01]Is this the micro channel that will lead us to these targets, 90,000 dollar, 100,000 dollar, in a couple of legs up?

[00:09:13]Nobody knows, okay? But what's true is that that the market initiated already a move upwards.

[00:09:21]Actually, it is important because since, you know, what is this? July 2025? The market is not clearly or has been not in a in an always in long phase for a very long time, and now here This first time in market does that. It is not It is not a easy to change a market.

[00:09:43]So, whenever you see this change, at least what you expect is some resistance to immediately do another reversal, especially, of course, if on the left there is a contextual support. If here there was nothing, and I I and we see like the bears are really strong, then this always in long it's usually a good thing to go against. But, if you believe that here, around this area, you are in the lower third of a major range, then it is a reasonable to expect that this will not not go easily lower. So, there is like fundamental support that there might be or that this might be a bull leg that will have continuation.

[00:10:38]Okay?

[00:10:40]Certainties does not exist in the market.

[00:10:43]And that's something that you have to accept, whether you're listening to me or whether you are listening the best analyst in the world. That's something that it doesn't happen.

[00:10:53]No.

[00:10:55]Um if you want to do If you want to trade, if you want to find a trading opportunity, it is true that the only way you have to find opportunities it is to all do all this job of price action or all this job of analyzing the the price, right?

[00:11:20]So, here, how we can try to go for a long or a short trade, I will explain later on the daily chart, because I think the daily chart shows us a bit more zooming in how we can structure our trading ideas.

[00:11:39]Okay? For trading a micro channel like this, like always in clip to the long, always in flipping into long side.

[00:11:48]Well, normally traders uh wait to buy a pullback like they will try to buy the low of of a good bull bar, especially.

[00:12:00]Or even the 50% retracement of this whole bull leg.

[00:12:06]Because that that gives them um a probability uh risk and reward equation that they can control.

[00:12:17]But I will also give more ideas on the daily chart on how you can do that.

[00:12:24]Now, I am I look like I'm super bullish, but I am not. So, I I think that the market it might test this target. That's the target that I am the $90,000 actually is a target that I am thinking that we are going to test this year.

[00:12:45]Been saying that even those um black days.

[00:12:50]So, I will continue to think that this is the the target.

[00:12:56]Technical.

[00:12:58]This one is the psychological target. I think that the market is is is going there, but there's something important to note and it is that here the market instead of rejecting this fair break of rejecting higher, it rolled down and starts to go sideways, which means that bears sold.

[00:13:25]All right? There are trapped bears there. But more importantly, more than trapped bears what means it is that the price created an area of equilibrium down there.

[00:13:38]Uh uh Normally, when that happens, the market will come back and take all these lows, this one, this one, and the lowest low.

[00:13:49]At some point, it is something that it can perfectly do.

[00:13:52]And of course, if then there is no sellers willing to sell again, then the market will naturally reject stronger.

[00:14:03]And that will give us um more information and maybe more com- more confidence into the long side, into the um into the idea that the market will eventually test the upper third.

[00:14:20]Because I think that the market will test the upper third of the major range, and I think that because here there was a lot of participation, too. So, the market here uh it found um a lot of negotiation. So, at some point, these prices were traded by both bulls and bears, and I think that eventually we will also test all these highs.

[00:14:43]All right.

[00:14:44]So, uh before that, the most immediate price action what is telling us is that we can go perfectly to the $90,000 area.

[00:14:57]Now, we are going to go to the daily chart and see more granularity there.

[00:15:01]But before going to the daily chart, announce that uh on the website there is already the information of the Al Brooks price action live trading workshop that will take place in Macau from June 28th until July 1st.

[00:15:18]So, if you don't want to miss it or if you want to check the please go to the Brooks Trading Course website. You will find the the link in the description of this YouTube video and to the blog section. You will find that first this this article first where there is the explanation of of this event. And below, you will find very interesting analysis of the other presenters or the other authors of for the Brooks Trading Course website that it will provide you with a lot of first or different perspective of the markets that will help you fill your current gaps in understanding.

[00:16:08]If you want to learn how to analyze and to trade independently using price action, I encourage you to do the Brooks Trading Course. It is very low cost course. It is the best price action course that you will find in the internet or whatever wherever you go.

[00:16:27]I hold a masters in financial market. I have studied the best traders in the world.

[00:16:34]And after that I didn't know how to read a chart.

[00:16:38]So even if I had a lot of knowledge and a lot of information that nowadays I use for my trading edge to keep on consistently having an edge into the market.

[00:16:51]But I didn't know how to read the charts. So it was something that was missing and I found that in the Brooks Trading Course.

[00:16:58]So if you if you want to be serious about trading one way or the other, you will need to understand charts and feel comfortable in front of them.

[00:17:08]So if you want to do that, you have available this wonderful course and this um and this low cost and it includes everything you need to become a professional trader.

[00:17:22]Now, finally, the daily chart.

[00:17:26]The daily chart uh there is three lines. The blue line, it represents the breakout point of the bear flag in the weekly chart.

[00:17:37]Right? And those black lines here and there represent this area of gap that we have seen in the in the weekly chart. And now currently we are like doing that and now we are testing all these levels.

[00:17:53]So, what happens normally between these lines, an area where there has not been much trading, a gap area, is that the the price normally moves fast through them.

[00:18:09]So, it either rejects quickly or it penetrates fast.

[00:18:16]The market went to test here and here for the first time these areas, but did not reject quickly. Did not reject quickly when tested this blue line. So, that gives me some information that at least for now, I think that the bulls are serious about this bull trend.

[00:18:40]I think that they have chances of continuing even if this was a zone where someone like me will try to look for sells.

[00:18:52]We'll We'll try to look for shorts because at some point in the past this was controlled by bears.

[00:19:00]Right? So, I'm looking for shorting and where I target the price to go?

[00:19:05]Back to the middle of the previous trading range and so end station. So, that as a trade I was looking for, but instead what I have been what I have been witnessing it is that the price is accepting the value perception is migrating higher.

[00:19:25]And the market is penetrating into this zone. So, of course, the price can still go down here and fail the bull trend. That is something that can happen at least in a 40% chance probability.

[00:19:44]But I think that the market will continue higher to go higher.

[00:19:49]And since this bearish move has not appeared and now the market is clearly always in bull long, then we're going to discuss the bull side of this possible trade.

[00:20:04]If I think that the market is going from a higher time frame to $90,000, then I have clearly here a bull leg and clearly defined a major higher low around the $70,000 area. So, how do you trade a bull channel?

[00:20:27]The best way or the most probably the most effective strategy it is to wait for the market to print a bull flag and to buy the low of the bull flag because 80% of attempts of breaking um down um a bull flag in a strong bull trend will fail.

[00:20:50]Then, there is the 60% chance of this bull breakout of the bull trend um leading to a measured move up at least of the size of the bull flag.

[00:21:06]So, I am supposing now that market is creating a bull flag here.

[00:21:11]And of course, this will be a good idea, too, because you have um also potential targets above.

[00:21:20]Right? So, I think that you uh could be a good idea to to just trade the breakout of this uh of this of this high and even you can wait for a follow-through and still you have room for the $90,000 area.

[00:21:38]Another thing that traders do it is to buy bear bars. Like for example, buying this bear bar here.

[00:21:47]That's something you can do and the stop loss in this case is always the major higher low.

[00:21:53]As long as you can structure a one-to-one reward-to-risk ratio up to the $90,000 area and you have a reasonable stop loss.

[00:22:05]Now, if you have to buy the pullback, your stop loss is here.

[00:22:11]And if you want to buy the bull breakout, I have not I did not measure this, but you can either look if there's a one-one measured move between this high and this stop loss here or you can tighten your stop loss there at the low of this pullback. You will have less probability of success, but a better reward-to-risk ratio, which is always um what happens. The higher the probability you want, the the worse reward-to-risk ratio.

[00:22:46]And the lower probability, the better reward-to-risk ratio. So, this is how the traders' equation works.

[00:22:55]So, I I think that this is all I have for you today.

[00:22:59]Thank you so much for watching this video to get into the end of the video.

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