🧪THE LAB - WEEKLY MARKET DIGEST (27)

The move we discussed last week finally happened.

BTC rejected from the 80-82k region and sold off into the support area we have been tracking for months.

The reaction here matters.

For now, we continue to view this as part of a larger accumulation process rather than the start of a new trend.

A quiet period overall.

A small drawdown, nothing outside normal system expectations.

BTC has reached the lower boundary of the range.

Support remains:

→ 59k - 61k

Resistance remains:

→ 79k - 83k

Last week we discussed the possibility of another move lower before a larger recovery could begin.

That scenario remains in play.

For now, we continue to treat BTC as range bound until proven otherwise.

The yellow dashed line marks the beginning of the recent selloff.

Since then:

• Funding has cooled
• Open Interest remains elevated
• Premium remains negative
• Spot buying activity has increased

The most interesting change is spot demand.

Buyers are becoming more active around 60k, although participation still remains below previous capitulation levels.

The broader accumulation thesis remains intact.

The weekly RSI remains one of the most important charts we track.

Historically, oversold RSI conditions tend to mark the beginning of a bottoming process rather than the exact bottom.

That signal appeared in February.

Nothing has changed there.

For now, we continue to expect several more months of range trading and accumulation before a larger trend develops.

INJ remains on the watchlist.

The chart continues to hold up well relative to the broader market and remains inside the accumulation zone we've discussed over recent weeks.

For potential entries, support zones and trade plans, see The Lab.

One setup on our watchlist is showing exceptional relative strength despite the recent market weakness and remains near a key breakout area.

Another setup is approaching a major higher-timeframe support zone where risk/reward is becoming increasingly attractive.

Full watchlist, levels and execution plans are available inside The Lab Premium.

Fear is returning.

That is usually when the most interesting opportunities begin to appear.

Whether this support holds or not, we believe BTC is much closer to the end of the bottoming process than the beginning.

Patience remains required.

This newsletter is for informational and educational purposes only. We have positions in the assets discussed here. It does not constitute financial advice, trading advice, or investment recommendations. Any market commentary, analysis, charts, or outlooks reflect our personal opinions and are not guarantees of future performance.

Cryptocurrency trading involves significant risk and may not be suitable for all investors. Always conduct your own research and consider your risk tolerance before making trading decisions. The Lab, its contributors, and its systems (SML1/SML2/SML3) do not take responsibility for losses incurred from trades based on this content.

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🧮 How We Measure Performance at The Lab

All performance is tracked using R-based results, a professional risk-adjusted metric used by systematic traders.

Why this matters:

Our weekly and monthly stats reflect the net sum of R across all closed trades.
This ensures the results remain objective, consistent, and comparable across all market conditions.