Bitcoin analysis by tradeCompass

tradeCompass for Bitcoin Futures – February 13, 2025

At the time of this analysis, Bitcoin is trading at $96,140. Our bullish threshold is set at $96,000, as the Point of Control (POC) for today is at $96,095. This places Bitcoin slightly above a key volume level, reinforcing the bullish bias.

📚 Understanding Key Market Metrics for Traders

Before diving into the trade levels, let’s cover why these levels matter and how professional traders use them to make informed decisions.

🔹 Value Area (VAH, VAL)The Value Area is the price range where 70% of the day’s volume has been transacted.

• Value Area High (VAH) – The upper boundary where buying interest was strong. If price breaks above VAH, it signals bullish momentum.
• Value Area Low (VAL) – The lower boundary where selling pressure dominated. A break below VAL suggests potential downside continuation.

🔹 VWAP (Volume-Weighted Average Price)The VWAP is a dynamic intraday benchmark that reflects the average traded price, weighted by volume.

• Institutional traders monitor VWAP to gauge whether the price is trading at a discount (below VWAP) or a premium (above VWAP).
• When price approaches VWAP bands (standard deviations around VWAP), traders look for reversals, breakouts, or mean reversion setups.

🔹 Point of Control (POC)The POC is the most traded price level of the session, where the highest volume has been transacted.

• Price action around POC often indicates market equilibrium or potential breakouts.
• If price is above today’s POC, bullish bias strengthens; if price falls below POC, bearish risk increases.

Now, let’s apply these concepts to the Bitcoin trade setup for today.

🔵 Bullish Trade Plan (Above $96,000)

If Bitcoin stays above $96,000, our bullish bias remains intact. The key levels to watch for profit-taking are:

1️⃣ $96,830 – A quick first profit target, positioned just below today’s VWAP.2️⃣ $97,025 – A second profit target, slightly above today’s Value Area High (VAH).3️⃣ $97,365 – A third profit level.4️⃣ $97,640 – Yesterday’s POC, a critical liquidity area where strong positioning occurred.5️⃣ $98,000 – Just above yesterday’s VAH, marking a significant resistance zone.

For swing traders looking beyond intraday moves:

6️⃣ $99,900 – Positioned just below the psychological $100,000 round number and aligned with the January 16th Value Area Low, which held for nearly two weeks.7️⃣ $100,540 – A key swing trading level, marking the February 4th VAH. A breakout above this could trigger further upside.8️⃣ $102,660 – Located just above the POC and VAH of February 3rd.9️⃣ $105,000 – A psychological level just below the $105,150 key resistance.🔟 $107,115 – An extended aspirational target for bullish momentum.

🔴 Bearish Trade Plan (Below $94,860)

If Bitcoin falls below $94,860, the bias shifts bearish, as this would be under the lowest VWAP level of the February 3rd down day. Bearish traders can consider these levels:

1️⃣ $93,485 – First partial profit target.2️⃣ $92,500 – Positioned just above the Value Area Low of January 13th.3️⃣ $90,725 – Just above the Value Area Low of November 17th.

For bearish swing traders aiming for deeper declines:

4️⃣ $86,120 – Positioned just above $85,805, the Value Area Low from November 9th, marking a significant downside target over $10,000 below the current price.

📌 Final Notes for Traders

• Trade at your own risk – These levels serve as orientation points, but each trader must apply their own strategy, stops, and risk management.
• Many traders use tradeCompass in different ways—some take partial profits at these levels, while others use them to fade certain moves for scalping opportunities.
• This is a decision-support tool, not financial advice—traders must adapt to market conditions.

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This article was written by Itai Levitan at www.forexlive.com.