Bitcoin is currently experiencing a robust trading phase, buoyed by a significant rebound from demand zones and a confirmed shift in market structure. While the overall momentum appears bullish, traders should stay alert for possible pullbacks into crucial support areas before any further upward movement.
Technical Insights
By Shayan
Daily Chart Overview
On the daily chart, Bitcoin has recently demonstrated a strong recovery from the identified order block (demand zone), indicating that buyers are firmly in control at this pivotal level. This rebound was further confirmed by a clear breakout above the 100-day moving average, which had previously served as dynamic resistance.
This progression indicates a resurgence of bullish momentum; however, it’s important to consider that there may be short-term pullbacks towards the broken moving average near $112K. If this retest proves successful, it would maintain an overall supportive structure for continued movement toward reaching all-time high resistance levels.
4-Hour Chart Analysis
The 4-hour chart reveals a distinct Change of Character (CHOCH), marking an essential transition from bearish to bullish market structure. Following its breakout above previous swing highs, Bitcoin is now consolidating just below the $117K resistance area.
The green decision point zone at $112K remains critical to watch closely. A retracement into this order block would not negate the positive outlook; rather, it could offer an opportunity for healthy correction before advancing higher again. Maintaining position above this base keeps open pathways toward retesting all-time highs.
On-Chain Insights
By Shayan
The transfer of Bitcoin from miner wallets to exchanges has historically served as an indicator of supply-side pressure within the market. Peaks in miner-to-exchange flows have often aligned with market tops due to increased distribution leading to heightened selling pressure.
Pertinently, the 30-day moving average of Miner-to-Exchange Flow has recently dropped to its lowest levels in recent times. This decline suggests that miners are decreasing their distribution and potentially accumulating more Bitcoin instead. Notably, this trend coincides with Bitcoin’s recent surge past $115K—an encouraging sign reflecting positive sentiment among miners.
In summary, combining technical structural shifts with miner accumulation presents an optimistic outlook for Bitcoin’s future performance. As long as support holds around $112K, Bitcoin seems well-positioned to maintain its momentum and make another attempt at reaching new all-time highs.