Btcusd techinical analysis.The chart shows a BTC/USD (Bitcoin vs. US Dollar) technical analysis on the 1-hour timeframe. Here's a detailed breakdown:
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🔍 Chart Elements & Interpretation:
1. Trend Lines:
Upper Pink Trend Line: Acts as a resistance from a previous high.
Lower Pink Trend Line: Represents a support line from the recent upward trend.
Blue Channel: Shows a rising wedge or ascending channel (often a bearish reversal pattern).
2. O.B (Order Blocks):
Upper O.B Zone (~120,000–121,000): Potential supply zone or area of resistance.
Lower O.B Zone (~117,500–118,500): Possible demand zone or support.
3. Price Projection:
A measured move of 2,585.6 points (2.18%) is marked upward from the current breakout attempt.
4. Current Price:
BTC is trading at $119,771.8, with a +0.90% increase at the time of this chart.
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🧠 Technical Outlook:
Bullish Case:
Breakout above the upper trend line and clearing the upper O.B could lead to a continuation toward 122,000+.
If BTC respects the demand zone and bounces, the uptrend may resume.
Bearish Case:
Failure to break above resistance or rejection at
BTCUSD trade ideas
BTC – Final Push Before the Top? Here's What I’m WatchingBeen getting a lot of questions recently about where I think BTC tops this cycle, so I figured it’s time to lay out what I’m seeing on the higher timeframes and what could be coming next.
First off, I want to stress this again — USDT.D will be the key chart for spotting the top. It’s been one of the most accurate indicators across the board for understanding tops and bottoms. But it’s even more powerful when used alongside broader structure and confluence, which is what I’m doing here.
Looking at BTC’s high timeframe structure, I’ve been tracking this ascending trend channel since 2023 — and we’ve remained within its bounds beautifully. Every leg up has been met with a reaction near the channel highs, while each major correction has tapped into the lower channel support or just below midline before continuing the trend.
Right now, price is pushing back up toward that upper channel resistance, and if it behaves like it has previously, I’d expect it to act as a major magnet again. That aligns with a projected range of $140,000 to $160,000, depending how deep the wick runs or how extended this move gets from the channel midline.
On top of that, fib extensions from the previous high to low give us another layer of confidence. We’ve already seen a reaction at the 1.272 level, which paused price temporarily. The next big fib? The 1.618 — which sits right around $138k — adding confluence with the top of this HTF trend channel.
What makes this even more interesting is that this move is aligning near-perfectly with the 4-year cycle structure, which suggests a potential cycle top around September 2025. That’s roughly two months away, and it fits the pattern of previous cycles where BTC tops approximately 18–20 months post-halving.
As we approach this zone, I’ll be watching for the usual signs: slowing momentum, bearish divergence, volume anomalies, and rejection candles into resistance. But I won’t just be relying on the BTC chart alone. I’ll be stacking confluences from other key indicators too — USDT.D, BTC.D, macro risk indicators, and stablecoin flows — to confirm if this is truly the top or if there’s one more leg left in the tank.
Once the top does form, whether it's $138k or $160k or somewhere in between, I think we move into the distribution phase that begins the next macro downtrend. The next few years will be about preservation and accumulation again, and I’m already eyeing zones like $49k and below as potential long-term HTF demand levels when that time comes.
For now, we’re in what I believe is the final bullish leg of this cycle. I’m positioned, prepared, and watching closely for signs of exhaustion as we move into this zone of confluence.
Let the market do its thing — just make sure you’ve got a plan for when the music stops.
"Bitcoin Bullish Reversal Setup with Target Zones (8H Chart)"This 8-hour Bitcoin/USD chart shows a potential bullish setup. Key takeaways include:
Order Block: Identified support zone for possible reversal.
TP1 to TP4: Target points for profit-taking as price moves upward.
Target Zone: Final target area near $123,252.
Expected move: A short-term dip into the order block, followed by a rally toward the target zone.
BTC Next Move within 11-15 DaysBTC will hit $62,528.74 Within 11-15 Days
The historical trend suggests that once Bitcoin (BTC) surpasses the $50,000 threshold, it typically enters a bullish phase, experiencing significant gains. This observation is based on past market behavior, where crossing this key price point has often led to increased investor confidence and subsequent price surges.
BTCUSD Long📈 Scenario Outlook:
Bias: Bullish
Preferred Play: Long setups are favorable as long as price holds above 116,600 demand.
BTC is expected to push through the intermediate supply zones and potentially attempt a full retracement toward the previous CHOCH high at 123,231.
📌 Key Zones ("Your Borders"):
🟢 Demand Zone (Support)
Zone: 116,600 – 117,600
This is a well-marked reaccumulation zone, aligned with previous demand and the CHOCH origin. Price respected this level multiple times, showing it as a valid base for long entries.
As long as BTC holds above this zone, the bullish thesis remains valid.
🔴 Supply Zones (Resistance Targets)
First Supply: 119,000 – 120,000
Aligned with the 50% retracement level (11964.22) from the previous high to low swing.
Expect short-term reaction here; however, this level may not hold if momentum continues building.
Upper Supply Zone: 121,500 – 123,200
This is the final major resistance before revisiting the previous high at 123,231.
A sweep or rejection from here could form a double top or distribution structure, depending on macro factors and volume.
THAT WHAT YOU NEED TO KNOW ABOUT BTC IN 2025Professional Technical Analysis & Trading Plan for BTC/USD (Hypothetical 2025 Data)
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1. Technical Structure & Key Observations
A. Price Context:
- **Current Price:** ~84,197 (below SMA 81,998).
- **SMA (Simple Moving Average):** 81,998 (likely 200-day SMA, acting as dynamic resistance).
- **Volume:** 52K (low volume suggests consolidation; watch for spikes to confirm breaks).
C. Key Levels (From Data):
- **Resistance:**
- Immediate: 81,998 (SMA).
- Major: 90,000, 100,000, 130,000 (swing highs).
- **Support:**
- Near-term: 74,000 (psychological),
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2. Advanced Indicator Analysis
A. Momentum (RSI & MACD):**
- **RSI (14):** Likely near 40–45 (neutral-bearish zone). A break below 30 signals oversold; above 55 confirms bullish momentum.
- **MACD:** Bearish crossover possible (signal line above MACD line). Watch for reversal above SMA.
B. Volume Profile:
- **Low Volume (52K):** Indicates weak participation. A surge above 100K on a breakout/breakdown would validate direction.
- **Volume-Weighted Average Price (VWAP):** If price trades above VWAP, bullish bias strengthens.
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3. Trading Strategies
Scenario : Bullish Reversal (30% Probability)
- **Trigger:** Daily close above SMA (81,998) with volume >100K.
- **Entry:** Long at 74,500 (confirmation of strength).
- **Targets:**
- TP1: 90,000 (8.5% move).
- TP2: 100,000 (19% move).
- **Stop Loss:** 71,500
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5. Sentiment & Catalyst Watch
- **Bullish Catalysts:** Institutional ETF inflows, Fed rate cuts, Bitcoin halving momentum.
- **Bearish Risks:** Regulatory crackdowns, exchange hacks, macro recession.
-Conclusion
BTC/USD is at a critical juncture. *Trade the SMA break/breakdown with volume confirmation*, and prioritize risk-reward ratios. Always cross-verify with real-time data and news.
Disclaimer: Hypothetical analysis for educational purposes. Not financial advice.* 🚀
BTCUSD - Exhausted? Second time rejected, now down.BTCUSD got rejected at the Centerline the second time. This is super bearish. If it's closing below yesterdays low, that's a clear short signal to me.
Taking 50% gains off the table is never bad. Because then you still have 50% if it's going up further. Otherwise, you got 50% booked.
Don't let gree eat your brain §8-)
BTCUSD Bullish Continuation Patterns on LTFThe trend is still bullish and the daily bull flag I posted is still at play. This is just a lower TF perspective within the bigger overacharching view.
Inverse head and shoulders and a bullish flag all indicate continuation to the upside. You can use market structure to confirm your entries and your target profit zones if you do not plan on holding until $150k
BTC CONSOLIDATESBitcoin is consolidating just below \$120,000 after Tuesday’s sharp pullback – which came on the highest daily volume since the \$74,000 bottom in March – mostly driven by selling. Despite the pressure, price held support cleanly at \$117,582 and continues to range tightly, suggesting healthy consolidation after a strong breakout above \$112,000. As long as \$117,582 holds, the structure remains bullish. A close above \$120,000 could ignite the next leg higher.
Bitcoin Strategic Compression Beneath the Cloud Gate.⊣
⟁ BTC/USD - BINANCE - (CHART: 4H) - (July 17, 2025).
◇ Analysis Price: $118,099.62.
⊣
⨀ I. Temporal Axis - Strategic Interval – (4H):
▦ EMA9 - (Exponential Moving Average - 9 Close):
∴ EMA9 is currently positioned at $118,286.83, marginally above the current price of $118,099.62;
∴ The slope of the EMA9 has begun to turn sideways-to-downward, indicating loss of short-term acceleration;
∴ The price has crossed below EMA9 within the last two candles, suggesting an incipient rejection of immediate bullish continuation.
✴️ Conclusion: Short-term momentum has weakened, positioning EMA 9 as immediate dynamic resistance.
⊢
▦ EMA21 - (Exponential Moving Average - 21 Close):
∴ EMA21 is measured at $118,018.67, positioned slightly below both price and EMA9, indicating a recent tightening of trend structure;
∴ The slope of EMA21 remains positive, preserving the medium-range bullish structure intact;
∴ EMA21 has been tested multiple times and held as support since July 15 - confirming tactical reliability as dynamic floor.
✴️ Conclusion: EMA21 stands as a critical pivot zone; any sustained breach would denote structural stress.
⊢
▦ EMA50 - (Exponential Moving Average - 50 Close):
∴ EMA50 is currently located at $116,240.85, well below current price action;
∴ The curve maintains a healthy positive inclination, affirming preservation of broader intermediate trend;
∴ No contact or proximity to EMA50 over the last 20 candles - indicating strong bullish detachment and buffer zone integrity.
✴️ Conclusion: EMA50 confirms medium-term bullish alignment; not yet challenged.
⊢
▦ EMA200 - (Exponential Moving Average - 200 Close):
∴ EMA200 stands at $110,539.69, forming the base of the entire 4H structure;
∴ The gradient is gradually rising, reflecting accumulation over a long time horizon;
∴ The distance between price and EMA200 reflects extended bullish positioning, yet also opens risk for sharp reversion if acceleration collapses.
✴️ Conclusion: Long-term structure remains bullish; early signs of overextension exist.
⊢
▦ Ichimoku Cloud - (9, 21, 50, 21):
∴ Price is currently above the Kumo (cloud), placing the pair within a bullish regime;
∴ Tenkan-sen (conversion) and Kijun-sen (base) lines show narrowing separation, suggesting momentum compression;
∴ Senkou Span A > Span B, and the cloud ahead is bullishly twisted, though thinning - indicating potential vulnerability despite structural advantage.
✴️ Conclusion: Bullish regime intact, but loss of momentum and cloud compression warrant caution.
⊢
▦ Volume + EMA21:
∴ Current volume for the latest candle is 3 BTC, compared to the EMA21 of 84 BTC;
∴ This indicates an extremely low participation phase, often associated with distribution zones or indecisive consolidation;
∴ Previous impulsive candles (July 15) reached well above 100 BTC - the current contraction is stark and strategically significant.
✴️ Conclusion: Absence of volume threatens trend continuation; energy depletion apparent.
⊢
▦ RSI - (21) + EMA9:
∴ RSI (21) is positioned at 55.73, marginally above neutral zone;
∴ EMA 9 of RSI is 57.71, crossing downward against RSI - bearish micro signal;
∴ No divergence is present versus price action - oscillator confirms current stagnation rather than exhaustion.
✴️ Conclusion: RSI losing strength above neutral; lacks momentum for breakout, but no capitulation.
⊢
▦ Stoch RSI - (3,3,21,9):
∴ %K is 21.44, %D is 45.34 - both pointing downward, in deacceleration phase;
∴ Recent rejection from overbought zone without full reset into oversold - signaling weak bullish thrust;
∴ Historical cycles show rhythmical reversals near current levels, but only with supportive volume, which is absent now.
✴️ Conclusion: Short-term momentum failed to sustain overbought breakout - micro-correction expected.
⊢
▦ MACD - (9, 21):
∴ MACD line is at -104.80, Signal line at 268.16 - large separation, histogram deeply negative;
∴ The bearish crossover occurred with declining volume, implying fading momentum rather than aggressive sell-off;
∴ No bullish divergence formed yet - continuation of correction remains technically favored.
✴️ Conclusion: MACD confirms trend exhaustion; no reversal in sight.
⊢
▦ OBV + EMA 9:
∴ OBV is 71.13M, perfectly aligned with its EMA9 - indicating equilibrium in volume flow;
∴ No directional bias in accumulation or distribution - flatlining suggests passive environment;
∴ Prior OBV uptrend has stalled since July 15 - reinforcing narrative of hesitation.
✴️ Conclusion: Institutional flow is neutral; no aggressive positioning detected.
⊢
🜎 Strategic Insight - Technical Oracle: The current price structure presents a classic post-impulse compression configuration within a preserved bullish environment. Despite the higher timeframe alignment, multiple short-term indicators exhibit tactical dissonance and signs of momentum decay. This inconsistency reflects a market caught between structural optimism and tactical hesitation.
♘ Key strategic signals - Structural Alignment:
∴ All major EMA's (9, 21, 50, 200) remain stacked in bullish order with no bearish crossovers imminent;
∴ Price remains above the Ichimoku Cloud and above EMA50 - both confirming structural dominance by buyers.
♘ Momentum Degradation:
∴ RSI (21) is drifting below its EMA9, weakening the momentum required for further upside continuation;
∴ Stochastic RSI has rolled over aggressively, failing to reach oversold before reversing - mid-cycle weakness is confirmed.
♘ Volume Collapse:
∴ The current volume profile is critically weak - 3 Bitcoin against an average of 84 Bitcoins (EMA21);
∴ Price attempting to sustain above EMA's with no conviction signals distribution or passivity.
♘ MACD & OBV:
∴ MACD histogram remains deep in negative territory, and no bullish crossover is visible;
∴ OBV is flat - neither accumulation nor distribution dominates, leaving directional thrust suspended.
✴️ Oracle Insight:
∴ The technical field is Structurally Bullish, but Tactically Compressed.
∴ No breakout should be expected unless volume decisively returns above baseline (84 Bitcoins EMA);
∴ Below $117,800, the structure risks transition into a corrective phase;
∴ Above $118,450, potential trigger zone for bullish extension if accompanied by volume surge.
♘ Strategic posture:
∴ Wait-and-observe regime activated;
∴ No entry condition satisfies both structure and momentum at present;
∴ Tactical neutrality is advised until confirmation.
⊢
∫ II. On-Chain Intelligence - (Source: CryptoQuant):
▦ Exchange Reserve - (All Exchanges):
∴ The total Bitcoin reserves held on all exchanges continue a sharp and uninterrupted decline, now at ~2.4M BTC, down from over 3.4M in mid-2022;
∴ This downtrend has accelerated particularly after January 2025, with a visible drop into new lows - no accumulation rebound observed;
∴ Historically, every prolonged depletion of exchange reserves correlates with structural bullish setups, as supply becomes increasingly illiquid.
✴️ Conclusion: On-chain supply is structurally diminishing, confirming long-term bullish regime intact - mirrors technical EMA alignment.
⊢
▦ Fund Flow Ratio - (All Exchanges):
∴ Current Fund Flow Ratio stands at 0.114, which is well below historical danger thresholds seen near 0.20-0.25 during local tops;
∴ The ratio has remained consistently low throughout the 2025 uptrend, indicating that on-chain activity is not directed toward exchange-based selling;
∴ Spikes in this indicator tend to precede local corrections - but no such spike is currently present, reinforcing the notion of non-threatening capital flow.
✴️ Conclusion: Capital is not rotating into exchanges for liquidation - volume weakness seen in 4H chart is not linked to sell intent.
⊢
▦ Miners' Position Index - (MPI):
∴ The MPI sits firmly below the red threshold of 2.0, and currently ranges in sub-neutral levels (~0.5 and below);
∴ This suggests that miners are not engaging in aggressive distribution, and are likely retaining Bitcoin off-exchange;
∴ Sustained low MPI readings during price advances confirm alignment with institutional and long-term accumulation behavior.
✴️ Conclusion: Miner behavior supports structural strength - no mining-induced supply pressure present at this stage.
⊢
🜎 Strategic Insight - On-Chain Oracle:
∴ Across the three strategic indicators, no on-chain evidence supports short-term weakness;
∴ Supply is declining - (Exchange Reserve ↓);
∴ Funds are not preparing for exit - (Flow Ratio stable);
∴ Miners are not selling - (MPI subdued).
✴️ This constellation reinforces the thesis of Structural Bullishness with Tactical Compression, and suggests that any pullback is not backed by foundational stress.
⊢
𓂀 Stoic-Structural Interpretation:
∴ The multi-timeframe EMA stack remains intact and aligned - (9 > 21 > 50 > 200);
∴ Price floats above Ichimoku Cloud, and above EMA21 support, confirming elevated positioning within a macro bull channel;
∴ On-chain metrics confirm supply contraction, miner retention, and absence of fund rotation toward exchanges - structure remains sovereign;
∴ RSI - (21) slips under its EMA9 with low amplitude, indicating absence of energetic flow;
∴ Stoch RSI fails to reset fully and points downward - suggesting premature momentum decay;
∴ MACD histogram remains negative, while volume is significantly beneath EMA baseline (3 BTC vs 84 BTC);
∴ Price faces resistance at Kijun-sen ($118.451), acting as tactical ceiling; no breakout signal detected.
⊢
✴️ Interpretatio Finalis:
∴ Structural integrity remains unshaken - the architecture is bullish;
∴ Tactically, however, the battlefield is fogged - silence reigns in volume, hesitation in oscillators;
∴ A true continuation requires volume resurrection and resolution above $118,450. Until then, neutrality governs the edge.
⊢
⧉
Cryptorvm Dominvs · ⚜️ MAGISTER ARCANVM ⚜️ · Vox Primordialis
⌬ - Wisdom begins in silence. Precision unfolds in strategy - ⌬
⧉
⊢
120K is the Key.Morning folks,
Our last plan worked perfect - market re-tested 117K support and jumped out. If you have longs - you could keep it.
We consider now two alternative scenarios, although we think that this one with triangle is more probable, we do not exclude the H&S shape on 1H chart that could lead BTC down to 112-113K support area.
So, if you do not know how to deal with this - keep an eye on the 120K area and top of the right arm. Upside breakout will confirm H&S failure and triangle scenario. Otherwise, until market stands under 120K - consider H&S as a basic scenario, just for safety.
Take care, S.
BTCUSD Analysis : Reversal Brewing from Volume Burst Demand Zone🧠 Overview:
Bitcoin is currently showing signs of a potential bullish reversal, following a classic Market Maker Cycle (MMC) pattern. The price action has been clean, respecting both volume dynamics and structural levels, setting the stage for a possible breakout above key areas of interest.
Let’s dive into the detailed breakdown:
🔍 Key Technical Elements:
1️⃣ Volume Contractions – Early Sign of Momentum Shift
At the top left of the chart, we observe a sharp upward move, followed by volume contraction within a rising wedge. This typically represents:
Absorption of orders
Reduced volatility
Market indecision
This kind of structure often precedes a reversal or aggressive breakout, depending on how price behaves near liquidity zones.
2️⃣ Fakeout/Trap Above – Classic MMC Manipulation Phase
After the rising wedge formed, BTC experienced a quick fakeout (stop hunt) just above the highs, then dropped sharply. This was the manipulation leg — a clear signal that liquidity above the wedge was taken and smart money is now repositioning.
🧠 Market makers love to trap breakout traders before moving the opposite way. The drop confirms manipulation is complete.
3️⃣ Reversal Zone + Demand Interchange into Supply
Price then entered a marked reversal zone which was previously an area of demand — now interchanging into supply. This zone is critical because:
It aligns with volume burst zones
It acted as support turned resistance
Multiple rejections confirm order flow shift
This tells us smart money is now testing this area to accumulate or trap sellers.
4️⃣ Volume Burst Area – Institutional Involvement Confirmed
We can clearly identify a Volume Burst Area, where price spiked with strong momentum — this is not retail trading. This zone is now being revisited for a potential bullish re-accumulation.
Expect reaction from this area, as it likely contains unmitigated buy orders from institutions.
5️⃣ Break of Structure (BOS) Mapping:
Minor BOS: Breaks short-term lower highs, showing early intent.
Major BOS: Breaks significant structure, confirming shift in trend direction.
A successful retest of demand and then break of both BOS levels will likely lead to a strong bullish continuation.
📈 Trade Plan & Potential Price Path:
There are two potential bullish entry strategies forming:
✅ Scenario 1: Clean Breakout Plan
Price holds the current reversal zone
Breaks Minor BOS, then Major BOS
Retest of BOS confirms continuation
📍 Target: $119,600+
✅ Scenario 2: Liquidity Sweep Entry
Price dips lower into Volume Burst Area
Sweeps liquidity below and prints a bullish reaction
Enters from discount zone
Same upside targets apply
🧠 This would be a smart money entry — entering from the lowest point of pain for retail traders.
🧵 Final Thoughts:
BTC is setting up beautifully for a reversal continuation pattern within the MMC framework. We’ve seen:
📉 Initial drop (accumulation phase)
🎭 Fake breakout (manipulation phase)
📈 Upcoming expansion (breakout phase)
All signs point to a high-probability move upward, especially if price confirms with BOS + retest. Be patient, wait for price action to align with structure and volume clues.
BITCOIN SHORT FROM RESISTANCE
BITCOIN SIGNAL
Trade Direction: short
Entry Level: 118,311.95
Target Level: 111,141.79
Stop Loss: 123,054.98
RISK PROFILE
Risk level: medium
Suggested risk: 1%
Timeframe: 12h
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
✅LIKE AND COMMENT MY IDEAS✅
Mastering supply and demand zones - how to use it in trading?Supply and demand zones are key concepts in technical analysis used by traders to identify potential price reversal areas on a chart. They are based on the idea that prices move due to an imbalance between buyers (demand) and sellers (supply).
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What will be discussed?
- What are supply and demand zones?
- How to detect supply and demand zones?
- Examples from supply and demand zones?
- How to trade using supply and demand zones?
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What are supply and demand zones?
Supply and demand zones are areas on a price chart where the forces of buying and selling are strongly concentrated, causing significant movements in price. In simple terms, a supply zone is an area where selling pressure exceeds buying pressure, often leading to a drop in price. It usually forms when price moves upward into a region where sellers begin to outnumber buyers, pushing the price back down. On the other hand, a demand zone is a region where buying pressure exceeds selling pressure, typically resulting in a rise in price. This occurs when price moves downward into a region where buyers see value and begin to outnumber sellers, causing the price to increase again.
These zones reflect areas of imbalance in the market. In a supply zone, sellers are more eager to sell than buyers are to buy, often due to overbought conditions, news, or fundamental changes. In a demand zone, buyers are more eager to buy than sellers are to sell, often because the price has become attractive or undervalued. Traders look for these zones because they provide clues about where price may reverse or stall, offering potential entries or exits for trades.
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How to detect supply and demand zones?
Identifying supply and demand zones involves analyzing price action on a chart, typically using candlestick patterns. A common way to detect a supply zone is to look for a sharp upward move followed by a sudden reversal or strong drop in price. The area where the price stalled before falling sharply is likely to be a supply zone. This zone includes the highest candle body or wick before the drop, and a few candles before it that mark where the selling pressure began.
To identify a demand zone, you would look for a sharp drop in price followed by a strong rally upward. The area where the price paused before rising significantly can be considered a demand zone. Like with supply zones, the demand zone includes the lowest candle before the price reversed and a few candles leading up to it.
These zones are not exact price levels but rather ranges. Price does not have to touch an exact line to react; it often moves within the general area. For more accuracy, traders often refine their zones by identifying them on higher time frames such as the 4-hour or daily chart, then adjusting them slightly on lower time frames like the 1-hour or 15-minute chart.
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Examples from supply and demand zones:
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How to trade using supply and demand zones?
Trading supply and demand zones involves anticipating how price is likely to behave when it returns to one of these key areas. A common method is to wait for price to enter a zone and then watch for confirmation that it is going to reverse. For example, if price rises into a supply zone, you might look for signs like a bearish candlestick pattern, a drop in volume, or a rejection wick to signal that sellers are stepping in again. This would be an opportunity to enter a short trade with the expectation that price will fall.
Conversely, if price falls into a demand zone, you would wait for bullish signals—such as a strong bullish candle, a double bottom pattern, or clear rejection of lower prices—to confirm that buyers are returning. This would be a potential setup for a long trade, expecting the price to move up from the zone.
Traders often place stop losses just beyond the zone to limit risk in case the level fails. For a supply zone, the stop loss would go just above the zone, while for a demand zone, it would go just below. Targets can be set at recent support or resistance levels, or by using risk-reward ratios like 1:2 or 1:3 depending on the trader’s strategy.
Patience and discipline are important when trading these zones. Not every zone will lead to a reversal, and false breakouts can occur. Therefore, combining supply and demand analysis with other tools such as trendlines, moving averages, or indicators can improve the chances of a successful trade.
In summary, supply and demand zones help traders understand where large buying or selling forces are likely to influence price. By learning to identify these zones and waiting for confirmation signals, traders can enter high-probability trades with clear risk and reward levels.
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Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
Thanks for your support. If you enjoyed this analysis, make sure to follow me so you don't miss the next one. And if you found it helpful, feel free to drop a like and leave a comment, I’d love to hear your thoughts!
BTCUSD – Pullback Imminent?📉 BTCUSD – Pullback Imminent?
Buyers beware ⚠️ — The bullish FVG on the daily chart is no longer holding. Price has shown signs of rejection from the premium zone , and a deeper pullback toward the Fair Value Area at 111,740 seems likely.
🧠 Let the market breathe... we’ll catch the real ride from below.
👀 Eyes on the Monthly FVG (T2,4) as the ultimate demand zone if price accelerates lower.