A Major Support Zone Holds Once Again
Bitcoin just tapped into a key 4-hour support level, a zone where price has repeatedly bounced in the past. This area has proven to be a strong demand zone, with buyers stepping in each time price reaches it. What makes this level even more significant is that it perfectly aligns with the golden pocket Fibonacci retracement level, a key technical area where price often finds support before continuing its trend.
As expected, BTC reacted strongly upon reaching this zone, showing a sharp rejection and bounce to the upside. This confirms that buyers are still actively defending this area, and as long as we hold above this level, the probability of a move higher remains strong.
A Huge Imbalance Zone Above – Where Is BTC Likely Headed?
Looking ahead, the most interesting aspect of this setup is the large imbalance zone sitting above the current price. When price moves rapidly in one direction without much consolidation, it creates an inefficiency or imbalance in the market. These imbalances tend to get filled over time as price naturally retraces back to these areas.
In this case, there’s a significant imbalance above us, making it highly likely that Bitcoin will push higher in the coming sessions to correct this inefficiency. I’m targeting at least a 50% fill of this imbalance zone, as this is typically where price starts to show some reaction. This would put BTC at a critical decision point where we could either see further upside or a rejection back down.
If buyers remain in control, we could see Bitcoin fully filling this imbalance, which would push price towards the 84-85K range, a key area to watch for potential reversals.
What If Bitcoin Loses This Key Support?
While the current reaction from support looks promising, we always need to consider the bearish scenario. If Bitcoin fails to hold this golden pocket level and strong support zone, it could open the door for a much deeper retracement.
In this case, BTC could drop significantly, with the next major support sitting around the $72K level. This area represents a critical demand zone where buyers would likely step in more aggressively. A breakdown toward $72K would also signal a much larger corrective move within the broader trend, possibly shifting market sentiment in favor of bears.
What Comes Next?
Right now, Bitcoin is at a crucial point. The bounce from support suggests bullish strength, but the key test will be whether BTC can sustain this momentum and push into the imbalance zone. If we see a clean move into this area, I’ll be watching for potential short setups, as price often struggles to break through these zones in one attempt.
On the other hand, if Bitcoin fails to hold above this golden pocket and key support, the next logical move would be a retest of the $72K region, where buyers will have another chance to defend the trend.
For now, I remain cautiously bullish, expecting at least a partial fill of the imbalance before any major rejection. Let’s see how price action develops in the coming sessions!
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