New Supply Zone
Bitcoin exhibits robust upward momentum within a longstanding supply zone, presenting potential buying opportunities as it approaches demand zones. The closure above the previous supply zone signals a new target at $42,500, indicating a strong short-term bullish sentiment. Traders should exercise caution, anticipating possible resistance and potential corrective moves.
12/4/20231 min read
Currently, Bitcoin is positioned in a robust and long-standing supply zone, exhibiting a notable upward momentum. This trend merits attention, especially considering the market's closure and the prevailing low trading volume.
There is a potential for further upward movement as the market reopens. Additionally, Bitcoin is approaching several demand zones.
Upon reaching these zones, and after obtaining adequate confirmations, entering buy trades could be advantageous due to the distinctly bullish trend trajectory.
Moreover, Bitcoin has managed to invalidate its previous supply zone, as evidenced by its closure above the candle range in a higher four-hour time frame.
This development suggests a new supply zone target around the $42,500 mark.
However, traders should remain cautious, as this new supply zone could potentially resist further price increases and may even initiate a downward price correction.
Importantly, Bitcoin's current price is above the 0 Fibonacci level on the 4-hour chart. This indicates a strong bullish sentiment in the short term.
The 0 Fibonacci level often serves as a critical pivot point. Remaining above this level suggests that the market is in a phase of accumulation and bullish momentum, which might lead to continued upward price movements.