In the 4-hour timeframe, Bitcoin has been ranging for several weeks, but now signs of weakness are becoming clear again. A closer look at the price structure shows that heavy selling pressure at a key resistance zone has triggered a breakdown of short-term supports, pushing the price towards demand zones.
Key Levels and Price Action
Main Resistance (116,800 – 118,500):
This zone has repeatedly rejected price rallies. The last retest of this area resulted in a strong bearish candle, signaling the presence of major sellers.
Current Support (112,500 – 113,000):
Price is currently consolidating near this level. A confirmed break below could open the door for a deeper correction.
Lower Demand Zones:
108,500 – 109,000: First attractive level for buyers and likely to trigger a short-term reaction.
107,200 – 107,500: Key support before the broader demand zone near 105,000 – 106,000.
Market Structure
Price has been in a corrective wave since topping near 118K.
The recent pullback into the supply zone and the subsequent sharp drop confirm bearish control.
A daily close above 116,800 would invalidate the bearish scenario and reopen the path to the highs — otherwise, lower support levels remain in play.
Learn more about “Price Action Trading“
Possible Scenarios
🔻 Bearish Scenario (Primary Outlook)
A breakdown of 112,500 could accelerate selling pressure.
Downside targets: 109,000 followed by 107,200.
A sustained move below 107K increases the probability of a deeper drop towards 105K.
🔺 Bullish Scenario (Less Likely for Now)
A bounce and daily close above 116,800 could send price back toward 118K.
A breakout above 118,500 would confirm a fresh bullish leg towards 120K and higher.
Conclusion
Bitcoin is still in a corrective phase, with sellers currently in control. It’s safer to wait for price reactions at lower demand zones before entering long positions. Proper risk management and stop-loss placement are crucial, as volatility could lead to rapid liquidation of positions.
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