- Bitcoin has reacted to key supply zones but is descending slowly, leaving liquidity behind
- A demand zone below could trigger a reaction if the liquidity above remains intact
- Monitoring price momentum around these levels is crucial for traders
In yesterday’s article, we highlighted how Bitcoin was in an intermediate zone, with liquidity sitting both above and below.
There was also a supply zone that, honestly, seemed a bit too obvious for my liking. So, what happened?
Bitcoin’s Journey Through Key Levels
Bitcoin followed the expected trajectory and moved up to that “too obvious” supply zone. It reacted as anticipated, but then it broke right through, heading to a higher supply zone.
That’s where things got even more interesting.
The price reacted to the upper supply area as well, but here’s the issue—it’s descending far too slowly. This sluggish pace is leaving behind a lot of liquidity, and that’s not something I’m comfortable ignoring.
The Demand Zone in Focus
There’s a demand zone below that’s grabbing my attention.
If Bitcoin dips into this zone without first taking the liquidity it has left above, it could lead to a very interesting reaction.
Key Observations
- Obvious Supply Zone: The reaction was there, but it was brief before the breakout.
- Higher Supply Zone: The price showed signs of resistance but is now descending slowly.
- Liquidity Dynamics: There’s too much liquidity accumulating, which could lead to volatility.
- Demand Zone Potential: This area could act as a springboard for Bitcoin to revisit the liquidity left above.
BTC Price Prediction
Here’s the potential play: if Bitcoin moves down to this demand zone, while leaving the liquidity above intact, we could see a strong reaction upward. The key is to watch for how the price interacts with these levels—momentum will be the giveaway.
What’s Next for Bitcoin?
Right now, patience is crucial. Bitcoin’s setup is a classic example of liquidity-driven moves, with supply and demand zones defining its path.
Waiting for the price to reach the demand zone before making a decisive move could offer the best opportunities.
Final Thoughts
Bitcoin is currently at a pivotal moment. Whether it dips into the demand zone or targets the liquidity above first, it’s essential to stay prepared and adapt to what the charts reveal next.
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