Bitcoin Analysis: Why the Demand Zone Failed

Bitcoin has been on a wild ride, and in our last analysis, we anticipated a reaction from a demand zone to grab liquidity above. That didn't happen

Cryptocurrency prices have been volatile as of late, and Bitcoin has seen some interesting price action. In our last analysis, we anticipated a reaction from a demand zone to grab liquidity above. However, that didn’t happen. Instead, BTC smashed through the demand and dropped lower. In this analysis, we’ll break down the possible reasons behind this move and discuss what might be next for Bitcoin.

Bitcoin Analysis: Demand Zone Failure Explained

One possible reason for BTC’s failure to react from the demand zone is that it had already reacted twice to extreme demand zones in the past. By the third time, it usually doesn’t hold up, which aligns with classic market behavior. As a result, the price plunged, likely targeting the trendline liquidity below.

Another crucial factor to consider is that all major timeframes, including H4, H1, and M15, are still bearish. This serves as a clear indication that we shouldn’t be jumping into longs just yet.

Bitcoin Price Prediction: What’s Next?

I won’t even consider buying until I see a structure shift on M5 or M15. If that happens, it would mean:

1. Bulls managed to reclaim a key level.

2. We have a bullish lower timeframe structure.

3. I’ll be looking to buy the dip.

If the price fails to shift on the lower timeframes, I’ll stay on the sidelines and let the market do its thing.

Final Thoughts on BTC Price Action

Right now, Bitcoin is playing by its own rules, crushing demand zones and hunting liquidity. The next move is likely dependent on whether bulls can reclaim key levels. Until then, patience is key.

In the meantime, if you're looking for a solid trading platform, I highly recommend checking out Weex, a top-tier crypto trading exchange with deep liquidity and advanced tools.

Stay tuned for the next update!