- H1 vs. H4 Structure: While H1 remains bullish, the H4 structure indicates potential bearish reactions at key supply zones
- Liquidity Insights: Spotting liquidity levels above and below is crucial for predicting Bitcoin’s next move and avoiding becoming part of the liquidity
- Risk Management: The market remains unpredictable—watch for smaller timeframe shifts and always manage your risk wisely
In our previous Bitcoin analysis, we observed a bullish market structure on the H1 timeframe, with liquidity resting above.
This hinted at a potential continuation of the upward movement.
However, the price didn’t dip to collect the liquidity below before surging higher. That’s perfectly normal—predicting price movements isn’t an exact science.
The Current Picture
While the H1 timeframe remains bullish, the H4 structure is still bearish. This dynamic creates a situation where Bitcoin could potentially react to the supply zone previously identified on the H4.
For now, the key lies in observing how price behaves as it approaches this area.
If the price reacts significantly, it might be worth exploring changes in market structure on smaller timeframes. This approach can help identify potential opportunities for shorts or further rallies.
Why Liquidity Matters
Spotting liquidity levels is crucial in trading.
Ignoring them can often lead traders to become liquidity themselves—caught in positions that institutions use to fuel their moves. Bitcoin’s price action serves as a perfect example of this principle in real-time.
A Word of Caution
As always, it’s important to remember that no analysis guarantees certainty. Markets are unpredictable, and scenarios can play out in ways we don’t expect.
Flexibility and risk management are your best allies in navigating Bitcoin’s price action.
By analyzing both bullish and bearish indicators, understanding liquidity, and adapting to the market’s unpredictable nature, traders can stay prepared for whatever Bitcoin decides to do next.
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.
