BONK Just Tapped Into a Daily Supply Zone

In the last piece we wrote together, BONK had just tapped into a daily supply zone. Remember that? We spotted the reaction — and then zoomed into the H1.

In our last analysis together, we saw how BONK had just touched upon a daily supply zone.

Do you recall that part, where we observed the reaction to the H4 chart, and then delved deeper into the H1 timeframe? It was almost as if the chart itself was hinting, "Now observe this clear supply zone up at the H1 chart."

And to our surprise, price responded accordingly.

What unfolded afterward was quite interesting. BONK pushed upwards, attempting to reach the liquidity poised above the prior highs. These highs were marked by high wicks, which acted like a trap, drawing traders in with the promise of more gains. However, as price touched the H1 supply, it swiftly reversed.

Now, examining the current structure—again on H1—I notice another supply zone, located slightly higher. What makes this zone intriguing isn't just the structure itself, but the liquidity that lies directly above it.

If BONK continues in its playful manner, which it rarely does, I envision it making a move upwards, aiming for those stops, before providing another short leg down.

However, let me be completely transparent. This isn't a prediction.

Yes, the structure appears bearish at present. Yes, that supply zone is inviting. But we're engaged in a game where the rules are subject to change. Price can undoubtedly alter its course, leaving us contemplating the chart's next move. These are possible scenarios, not assured outcomes.

As I often state, the market has no obligations to us. It doesn't care about the cleanliness of your setup or the number of confluences you identify.

But that's precisely what makes it fascinating. Because when it does align with our analysis, it feels like a synchronized dance with the chart itself.

Let's observe if BONK provides us with another move. I'll be keeping a close eye on that H1 supply zone. And if it unfolds like the last one, you know where to find me—back here discussing it.