BTC Bulls Make a Stand at Key Demand Zone | Is a Reversal ImmineChart: BTCUSDT, 1H
Bias: Neutral to Short-Term Bullish
Analysis:
Hello, traders! Here's a look at the current BTCUSDT price action, which finds itself at a critical juncture.
The Bearish Context (Macro):
For the past several days, Bitcoin has been in a clear and structured downtrend. This is confirmed by:
A strong rejection from the "Perfect Sell Zone 1" around the $122,000 - $120,000 level.
A series of lower lows and lower highs.
Multiple breaks of structure (marked as "Strong" lows being broken) to the downside, confirming bearish momentum is in control.
The Bullish Reaction (Micro):
Despite the strong bearish trend, the price has now entered a significant "Perfect Buy Zone 1" between approximately $111,500 and $108,500. We are seeing a very aggressive reaction from this area:
A massive bullish engulfing candle has formed, showing that buyers have stepped in with force.
This push has resulted in a minor break of structure to the upside (the latest "Break" label), which could be interpreted as a Change of Character (CHoCH). This is the first potential sign that the short-term bearish momentum is weakening.
Potential Scenarios & Key Levels :
Bullish Reversal / Pullback: If the bulls maintain control, the immediate target would be the previous support levels, which may now act as resistance.
TP 1: $114,400 (Fibonacci 0.786 level)
TP 2: $115,700 (Recent consolidation area)
TP 3: $116,875 (Fibonacci 0.618 level)
An ideal entry for a long position could be on a successful retest of the recently broken resistance around $112,800.
Bearish Continuation: If this bullish push is merely a liquidity grab and fails to hold, a break below the "Perfect Buy Zone" (a close below $111,500) would invalidate the bullish scenario. This would likely signal a continuation of the macro downtrend toward lower price targets.
Conclusion:
We have a classic conflict: a dominant bearish trend versus a strong bullish reaction from a key demand zone. While the immediate momentum favors the bulls, caution is advised. A confirmation of a higher low would strengthen the case for a reversal.
Disclaimer:
This is not financial advice. This is for educational purposes only. Always do your own research (DYOR) before entering any trade.
