- Current Trend: Bitcoin shows a bearish structure on lower timeframes
- Supply Zones & Liquidity: Key supply zones may guide retracement before further moves
- Potential Scenarios: Price may dip further to grab liquidity below or retrace to supply before continuing its trend
Bitcoin’s current price sits around 98,000, and it’s continuing to draw attention as traders analyze its next potential moves.
Let’s break down what we’ve observed over the past few days, focusing on price structure, supply and demand zones, and liquidity.
The H1 Bearish Structure
A few days ago, we noted that Bitcoin was forming a bearish structure on the H1 timeframe, trading within key supply zones.
What is a Supply Zone?
A supply zone typically marks an area where sellers dominate, causing a price drop after a bullish impulse. In this case, Bitcoin’s supply zone reflected a point of resistance, with price struggling to break higher.
As anticipated, the price resumed its downward trend after reacting to the supply. Before continuing lower, however, it tapped into a demand zone and grabbed liquidity.
Liquidity Explained
Liquidity in trading refers to areas where orders are clustered, often acting as magnets for price.
These clusters typically occur at key levels such as recent highs or lows, where stop-loss orders or pending orders accumulate. For Bitcoin, the liquidity zones marked earlier played a crucial role in guiding the price movements.
The M15 Perspective
On the M15 timeframe, the trend suggests further downside potential. Key elements include:
- An interesting supply zone that could act as resistance if the price retraces upward.
- Liquidity resting below the current levels, which may attract price action before any potential reversal.
Possible Scenarios
- Continuation Down: Price could seek liquidity below the current lows before reacting to demand or reversing.
- Retrace to Supply: Bitcoin might test the M15 supply zone before resuming its bearish trend.
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Final Thoughts
While the technical setups highlight possible scenarios, remember that the market is inherently unpredictable. These insights are based on historical price behavior and supply-demand dynamics, but nothing is guaranteed.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
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