Deciphering Bitcoin: How Market Structure Confuses Traders Across Different Time Horizons

In the complex ecosystem of cryptocurrencies, Bitcoin faces a particular challenge that directly affects those operating within it: the contradiction between the signals emitted by different analysis periods. With Bitcoin’s current price oscillating around $91.40K after a significant correction from its peak of $126.08K, market participants are interpreting the market structure in radically different ways depending on the timeframe they use.

The Paradox of Time Horizons

Daan Crypto Trades’ analysis reveals a phenomenon that goes unnoticed by many: Bitcoin’s market structure is not uniform. The 4-hour candles show indecision, the daily charts present downward pressure, while the weekly chart maintains an upward orientation. This fragmentation of signals creates a scenario where two traders can reach completely opposite conclusions studying the same asset.

The most challenging part is distinguishing between a genuine structural break and a temporary correction within a larger consolidation. When Bitcoin lost more than 30% from its maximum and pierced the liquidity gap below $82,000, both short-term traders and long-term investors experienced extreme volatility. Each group obtained completely different readings of the market’s health.

Current Dynamics and Positioning

From the peak of approximately $126,000 at the end of 2025, Bitcoin suffered a correction that wiped out nearly $1.2 trillion of the total crypto value in just six weeks. However, the nature of this drop differs significantly from historical bear markets.

Technical analysis would reveal that Bitcoin maintains critical long-term support levels intact. Volumes exceeding key moving averages on weekly charts suggest that the structural bullish trend remains in place, even during the correction. On shorter timeframes, the struggle to hold the $90,000 level and the formation of a new base above $86,000 generate tension between buyers and sellers.

A transformational change in market structure comes from institutional flow. The last few years saw investments exceeding $50 billion in Bitcoin ETFs, repositioning how capital accesses this asset. Companies now holding Bitcoin on their balance sheets represent participants with motivations and horizons completely different from conventional traders, fundamentally altering the market structure.

Technical Indicators and On-Chain Metrics

Beyond price, on-chain metrics provide clarity on the true strength of the market. The realized capitalization, which reflects the value of each Bitcoin according to its last transaction price, reaches an all-time high of $1.125 trillion. Surprisingly, this metric continued to rise during the recent correction, indicating that genuine capital was still entering despite price pressure.

The supply landscape adds another layer. After the April 2024 halving, daily issuance dropped to approximately 900 BTC. Institutional demand often exceeds this volume, creating a structural supply deficit that underpins long-term bullish pressures. Although this underlying dynamic is solid, it does not eliminate volatility or corrections in shorter timeframes.

Navigating the Complexity

Bitcoin’s market structure presents a puzzle that requires a multi-timeframe perspective to solve. Those operating in the short term see bearish signals on daily charts that justify caution, while long-term investors see weekly bullish patterns supported by healthy on-chain metrics. With Bitcoin consolidating around $91.40K and a total market value reaching $1825.65B, understanding these dynamics across multiple frames is essential to navigate the complexity of the cryptocurrency market.