- Key Decision Zone: Bitcoin’s price is testing a critical supply zone after liquidity grabs—major moves could be next
- Mixed Timeframe Signals: Higher timeframes remain bullish, but M5 and H1 show bearish structures building
- Watch Liquidity Above: Shorting is risky with untapped liquidity sitting above; be prepared for unexpected volatility
In our last Bitcoin analysis on December 10, we suggested that the price could dip to grab liquidity below after reacting to the supply zone above.
So, what actually happened?
Instead of immediately reaching the supply zone, Bitcoin only partially took the liquidity above before targeting the liquidity below.
This reinforces how liquidity and market structure can provide clues about potential price movements.
If you’re curious about Bitcoin’s high-timeframe (weekly, daily, H4) structure, check out the December 10 analysis, as those broader structures remain unchanged.
A Closer Look: M15 and M5 Insights
On the M15 timeframe, Bitcoin eventually grabbed the liquidity below before heading to the marked supply zone. By then, however, the price had already consumed that liquidity, resulting in no significant bearish reaction at the supply.
Zooming further into the M5 timeframe, we can see Bitcoin forming a bearish structure with lower highs and lower lows. This hints at potential short-term bearish momentum.
What’s Happening on H1?
The H1 timeframe is creating liquidity near a previously marked supply zone.
If you’ve been following my analyses, you know how critical such zones can be. Liquidity near supply often sets the stage for decisive moves.
What Could Happen Next?
Bitcoin currently sits in a supply zone, and while a reaction is possible, the presence of significant liquidity above makes short positions risky.
As always, the market can move unpredictably. These are possible scenarios, but nothing is ever 100% certain.
Important Note:
The information provided in this article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. Any actions you take based on the information provided are solely at your own risk.
We are not responsible for any financial losses, damages, or consequences resulting from your use of this content. Always conduct your own research and consult a qualified financial advisor before making any investment decisions.
