🧭 Overview:
Bitcoin’s recent price action has delivered a textbook sequence of institutional liquidity play, volume-driven breakout, and supply zone rejection. After rallying on increasing volume, BTC tapped into a significant 3x Supply Zone—which also served as a previous reversal point—and was swiftly rejected. The market is now trading around a key decision zone where traders must stay alert for a confirmed bullish reversal, or risk getting caught in further downside.
🔍 Step-by-Step Technical Breakdown:
🔸 Liquidity Grab + Volume Expansion
The move began with a liquidity sweep, as BTC pushed above recent highs, hunting stop-losses and inducing breakout traders. This kind of price manipulation is typical of smart money accumulation/distribution zones.
Immediately following that, we observed a volume expansion—a strong signal that institutional players had stepped in, propelling BTC upward with conviction. This expansion pushed price sharply into the 3x Supply Zone, a critical zone of interest from a previous bearish reversal.
🔸 3x Supply Zone – The Turning Point
Once price entered the 3x Supply Zone, bearish pressure resumed. No bullish continuation pattern appeared on the second attempt into this zone—confirming that sellers were defending it aggressively. This area has now been validated as a strong supply barrier, capable of initiating trend reversals.
🔸 Major BOS – Structural Shift Confirmed
Price broke below key support around $120,500, which marked a Major Break of Structure (BOS). This BOS is crucial—it represents a shift from a bullish to bearish market structure and is often the signal that retail longs are trapped.
This BOS was followed by a mini reversal zone, but again, no bullish confirmation appeared there—highlighting market weakness.
🔸 Minor BOS & Trendline Breakdown
Further downside action led to a Minor BOS near $117,800, reinforcing the bearish sentiment. Additionally, the ascending trendline—which had supported BTC’s rally—was decisively broken and retested from below. This confirms a shift in momentum, now favoring sellers.
📍 Current Price Action – Critical Decision Zone
BTC is currently hovering around $117,000, right at a potential demand zone. While there was a brief bullish reaction, the market hasn’t formed a valid bullish reversal pattern yet.
There’s a clear message from the chart:
“We want a bullish pattern here—otherwise, support will break and supply will double.”
In simple terms, unless bulls step in with structure (higher low, engulfing candle, etc.), sellers will likely take over, and price may test deeper support levels.
🎯 What to Watch Next:
✅ Bullish Case:
If BTC forms a strong reversal pattern (e.g., double bottom, bullish engulfing, or inverse head & shoulders), we can expect a short-term recovery back to:
Target 1: $118,500
Target 2: $120,000–$120,500
❌ Bearish Case:
Failure to hold this zone and no clear bullish pattern = likely continuation to the downside, potentially targeting:
$116,000
Even $114,500 in extended moves
🧠 Trading Insights (Educational):
Volume + Structure = Edge
Don’t rely solely on candlestick signals—combine them with structural breaks and volume to get confluence.
Supply Zones Aren’t Just Rectangles
The 3x Supply Zone was powerful because it had historical context, volume convergence, and psychological resistance. These layered factors make zones more reliable.
BOS Isn’t a Trendline Break
BOS means real structural shift. In this case, lower highs and lower lows confirmed the change.
💡 Final Thoughts:
BTC is at a make-or-break level. The recent rejection at the 3x supply zone has shifted the momentum, and buyers must prove their strength now—or risk watching the price unravel further.
Stay patient, wait for structure, and never fight momentum.
Bitcoin’s recent price action has delivered a textbook sequence of institutional liquidity play, volume-driven breakout, and supply zone rejection. After rallying on increasing volume, BTC tapped into a significant 3x Supply Zone—which also served as a previous reversal point—and was swiftly rejected. The market is now trading around a key decision zone where traders must stay alert for a confirmed bullish reversal, or risk getting caught in further downside.
🔍 Step-by-Step Technical Breakdown:
🔸 Liquidity Grab + Volume Expansion
The move began with a liquidity sweep, as BTC pushed above recent highs, hunting stop-losses and inducing breakout traders. This kind of price manipulation is typical of smart money accumulation/distribution zones.
Immediately following that, we observed a volume expansion—a strong signal that institutional players had stepped in, propelling BTC upward with conviction. This expansion pushed price sharply into the 3x Supply Zone, a critical zone of interest from a previous bearish reversal.
🔸 3x Supply Zone – The Turning Point
Once price entered the 3x Supply Zone, bearish pressure resumed. No bullish continuation pattern appeared on the second attempt into this zone—confirming that sellers were defending it aggressively. This area has now been validated as a strong supply barrier, capable of initiating trend reversals.
🔸 Major BOS – Structural Shift Confirmed
Price broke below key support around $120,500, which marked a Major Break of Structure (BOS). This BOS is crucial—it represents a shift from a bullish to bearish market structure and is often the signal that retail longs are trapped.
This BOS was followed by a mini reversal zone, but again, no bullish confirmation appeared there—highlighting market weakness.
🔸 Minor BOS & Trendline Breakdown
Further downside action led to a Minor BOS near $117,800, reinforcing the bearish sentiment. Additionally, the ascending trendline—which had supported BTC’s rally—was decisively broken and retested from below. This confirms a shift in momentum, now favoring sellers.
📍 Current Price Action – Critical Decision Zone
BTC is currently hovering around $117,000, right at a potential demand zone. While there was a brief bullish reaction, the market hasn’t formed a valid bullish reversal pattern yet.
There’s a clear message from the chart:
“We want a bullish pattern here—otherwise, support will break and supply will double.”
In simple terms, unless bulls step in with structure (higher low, engulfing candle, etc.), sellers will likely take over, and price may test deeper support levels.
🎯 What to Watch Next:
✅ Bullish Case:
If BTC forms a strong reversal pattern (e.g., double bottom, bullish engulfing, or inverse head & shoulders), we can expect a short-term recovery back to:
Target 1: $118,500
Target 2: $120,000–$120,500
❌ Bearish Case:
Failure to hold this zone and no clear bullish pattern = likely continuation to the downside, potentially targeting:
$116,000
Even $114,500 in extended moves
🧠 Trading Insights (Educational):
Volume + Structure = Edge
Don’t rely solely on candlestick signals—combine them with structural breaks and volume to get confluence.
Supply Zones Aren’t Just Rectangles
The 3x Supply Zone was powerful because it had historical context, volume convergence, and psychological resistance. These layered factors make zones more reliable.
BOS Isn’t a Trendline Break
BOS means real structural shift. In this case, lower highs and lower lows confirmed the change.
💡 Final Thoughts:
BTC is at a make-or-break level. The recent rejection at the 3x supply zone has shifted the momentum, and buyers must prove their strength now—or risk watching the price unravel further.
Stay patient, wait for structure, and never fight momentum.
For Daily Trade Setups and Forecast: 📈 t.me/xauusdoptimizer
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
For Daily Trade Setups and Forecast: 📈 t.me/xauusdoptimizer
Premium Signals Fr33: 💯 t.me/xauusdoptimizer
🥰🥳🤩
Premium Signals Fr33: 💯 t.me/xauusdoptimizer
🥰🥳🤩
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.