Bitcoin – Short-Term Improvement

Bitcoin remains confined within a broad trading range, but recent price action suggests a notable shift in momentum. Following Friday’s low, the short-term outlook has strengthened considerably, with the next potential target being a push into the 118K–122K supply zone.

Volume Analysis Reveals Hidden Demand

The recent price structure shows compelling evidence of underlying strength through volume analysis. The highest volume signature reveals hidden demand forming into a slightly higher low compared to previous levels. What’s particularly interesting is the lack of follow-through in earlier attempts, which helps highlight why the current setup looks more promising.

When comparing recent price bars to previous formations—analyzing two-bar combinations—the volume characteristics tell an important story. The earlier structure showed diminishing selling pressure paired with increasing demand across consecutive bars. This combination often signals a potential shift in market dynamics.

Follow-Through Confirms Improving Character

The follow-through action provides additional confirmation of this improvement. The volume signature during the follow-through period shows continued buying interest. Importantly, there is more demand present in the current structure than what was observed during comparable periods in earlier formations.

This increase in demand suggests a meaningful improvement in market character. The most recent rally shows particular strength when analyzed against previous attempts. The subsequent test of support levels further validates this improved structure—volume during the test remained almost identical but slightly less, while the price bar itself performed significantly better.

Price Structure Shows Strength

The tail formations at these test levels reveal critical differences between the current setup and previous attempts. While both periods produced tails indicating buying interest, the current structure has established these tails at notably lower price levels. This positioning suggests stronger underlying support and a more favorable risk-reward dynamic for potential upside movement.

The improvement in character is undeniable when comparing the current structure to earlier consolidation periods. The market is demonstrating considerably more strength than it showed during previous attempts to establish a bottom. This enhanced strength increases the probability of a move higher.

Next Target: 118K–122K Supply Zone

Given this improved technical structure, Bitcoin appears positioned to attempt an intrusion into the overhead supply zone between 118K and 122K. This zone represents the highest volume signature in the recent range, making it a critical level to overcome for any sustained upside move.

The combination of hidden demand, improving volume characteristics, and better price structure during follow-through creates a more constructive outlook than what existed during previous consolidation attempts. While Bitcoin remains range-bound for now, the quality of the price action has shifted in favor of the bulls.

For traders and investors watching Bitcoin’s next move, the key will be monitoring how price reacts as it approaches this supply zone. The improved foundation suggests there’s now enough underlying demand to potentially push through resistance levels that held in previous attempts. As long as this constructive character persists, the short-term trajectory for Bitcoin appears to have shifted toward the upside.

Disclaimer: This content is for educational purposes only and should not be considered financial advice.