Bitcoin price navigates demand zones on higher timeframes, eyeing $120K amid whale activity and younger coin selling. Is a correction coming before the rally?
Bitcoin's been on a rollercoaster, hasn't it? Let's break down what's happening with the Bitcoin price, demand zones, and what those higher timeframes are telling us.
Bitcoin's Bullish Momentum: Targeting $120,000
According to recent analysis, Bitcoin's recent price movements seem to be playing out as expected. After successfully clearing local highs and taking out liquidity above the previous range, Bitcoin is now navigating toward demand zones on higher timeframes, potentially pushing the price even higher. One analyst, TehThomas, pointed out that the correction from the liquidity sweep tested key imbalances, leading to a bullish shift. This suggests that Bitcoin could be gearing up for another run at higher levels.
Key Levels to Watch
The inverted daily gap around $114,000 has been tested multiple times and continues to hold as support. As long as this level remains intact, the next target sits above $120,000, where the next resistance zone lies. However, losing this inverted gap and subsequent trendline support could signal a bearish turn, potentially triggering a correction back toward the $111,000-$112,000 range.
Whale Activity and Selling Pressure
While the technical setup looks promising, some on-chain data suggests caution. Large balance groups, often referred to as "whales" and "sharks," have trimmed their holdings since mid-September, resulting in a net outflow of roughly 30,000 BTC. Simultaneously, younger coin holders, those who bought or moved their coins within the last year, have increased their selling activity. This selling pressure could lead to a short-term correction before the rally resumes.
Technical Indicators: A Mixed Bag
Despite the selling pressure, Bitcoin broke above an inverse head-and-shoulders pattern on September 10, and the breakout level has held. As long as the Bitcoin price stays above $114,900, the immediate upside target remains at $120,800. However, a dip toward $114,900 looks more realistic in the short term, as RSI data has flashed a hidden bearish divergence. This divergence often signals that momentum is slowing, leaving room for a brief pullback.
My Two Sats
The market's a tricky beast, isn't it? Based on current data, it seems like Bitcoin has the potential to hit $120,000 if it maintains its support levels. The strong buy-side pressure and positive technical indicators suggest a bullish outlook. However, the actions of whales and younger coin holders shouldn't be ignored. Their selling activity could introduce volatility and potentially trigger a short-term correction. Keeping a close eye on the $114,000 and $114,900 levels will be crucial in the coming days.
Final Thoughts
So, there you have it! Bitcoin's trying to break new ground while battling some headwinds. Keep an eye on those demand zones and higher timeframes, and who knows, maybe we'll all be celebrating $120K Bitcoin soon! Just remember, always do your own research and never invest more than you can afford to lose. Happy trading, ya'll!
