On the daily timeframe, Bitcoin’s price has faced selling pressure after testing the strong supply zone between $123,000 and $125,000. This zone, which has caused several rejections in the past (as shown by the red circles on the chart), indicates the presence of major sellers in the market.
Supply Zone
The red area on the chart represents the supply zone where buyer liquidity was absorbed before the market dropped sharply.
As long as Bitcoin doesn’t close a daily candle above this zone, the medium-term trend remains corrective rather than bullish
Demand Zone
On the downside, the green area between $100,000 and $104,000 marks a strong demand zone. Multiple long wicks and bullish reactions have appeared around this level, signaling buying activity. The most recent bounce also started exactly from this area, confirming buyers’ presence.
Market Structure
Currently, Bitcoin has formed a Lower High around $123,000 and a Higher Low near $104,000, which places the market in a range-bound phase.
The upper boundary of this range sits near $120,000, while the lower boundary lies around $100,000.
Bullish Scenario
If the price manages to hold above the short-term resistance at $114,000, a potential rally toward $120,000 and eventually $123,000 could follow.
Maintaining support at $108,000 will be crucial for this scenario.
Bearish Scenario
If the $100,000 support zone fails and the daily candle closes below it, the market could enter a deeper correction, targeting $95,000 to $92,000 levels.
Summary
At the moment, Bitcoin is consolidating between two major supply and demand zones.
Short-term traders should wait for a confirmed breakout from either side to determine the next directional move.
As long as the $100,000 demand zone holds, the market bias remains slightly bullish, but a breakdown below it could mark the beginning of a bearish phase.
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