- Bitcoin reached a new all-time high at $109K but left liquidity zones above and below
- A supply zone above could be breached, but be cautious with the liquidity surrounding it
- Stay patient—avoid trades for now unless a clearer move is evident, and always protect with break-even strategies
On the H4 timeframe, Bitcoin has recently made headlines by reaching a new all-time high (ATH) of $109,000.
While this milestone showcases the strength of the current market trend, it’s what happened after that demands attention.
Upon hitting this ATH, Bitcoin reacted downward, leaving liquidity both above and below its current position. At the moment, the price finds itself in a precarious middle ground—with no clear direction, flanked by liquidity zones above and below.
Assessing the Current Market Conditions
Currently, Bitcoin’s position offers little clarity. Here’s a breakdown:
- Supply Zone Above: Two notable supply zones sits above the price. However, its visibility makes it appear too obvious, which often increases the chances of it being breached. Adding to this likelihood is the significant liquidity resting just above the supply zone.
- Liquidity Below: On the other hand, there’s ample liquidity below the current level, further complicating directional bias.
Trading Strategy Recommendations
If you’re considering a trade, here’s my take:
- Selling the Supply Zone: If you choose to sell at the supply zone above, proceed with caution. The zone is likely to face strong pressure from the price moving upward toward the liquidity.
- Protect Your Position: Always set a break-even point to protect against unexpected upward moves that aim to clear out liquidity.
- Patience is Key: Given the current uncertainty, sitting on the sidelines might be the best strategy until a clearer opportunity emerges.
Final Thoughts
Bitcoin is at a crossroads, with liquidity acting as a magnet both above and below its current level. While the market often rewards decisive moves, this is a moment where caution can be just as valuable as action.
Whether Bitcoin will push higher to take out liquidity above or drop to capture the lower zones remains to be seen. Stay sharp, manage your risk, and let the market come to you.
Disclaimer: 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.
