Trade_With_Prajjwal

Introduction – This Is Not a Normal Dip
Right now, Bitcoin is not just “pulling back.” What the chart is showing looks more like a structured, multi-phase selling move — the kind that usually appears when big money is exiting positions, not when the market is simply correcting.
On my chart, three clear horizontal levels stand out. I call them the 1–2–3 Move Zones — not just supports and resistances, but a roadmap of where liquidity is likely to be hunted next.

This article breaks down what these zones really mean, how smart money typically uses them, and what traders should watch in the coming days.

he Bigger Picture – Trend Structure Is Changing

For weeks, Bitcoin was moving inside an ascending channel — higher highs, higher lows, and a clearly bullish structure.

But something important has already happened:

Price has broken below the lower boundary of the channel and failed to reclaim it.

This is often the first technical signal that control is shifting from buyers to sellers.

When a market falls back into the channel, bulls stay in charge. When it stays below the channel, rallies usually turn into selling opportunities instead of buying opportunities.

The 1–2–3 Selling Structure Explained

This structure is less about candles and more about market psychology and liquidity flow. It often appears during distribution phases, where large players reduce exposure while retail traders try to “buy the dip.”

Let’s break down each zone.

🔹 Zone 1 – The First Warning

This is where the market:

Loses its first major support
Attracts dip buyers
Produces a weak and shallow bounce

Most traders here believe:

“This is just a healthy correction. The uptrend will continue.”

But from a professional perspective, this zone is often where short positions start building quietly.

The key signal is not the bounce — it’s the lack of strength in the bounce.

🔹 Zone 2 – The Liquidity Trap

This is usually the most deceptive phase.

Here, Bitcoin often:

Shows a more convincing bounce
Breaks small intraday resistances
Pulls traders back into long positions

But structurally, this move often serves one purpose:

Creating liquidity for sellers at better prices.

Once this zone fails, the market tends to move faster to the downside as:

Stop losses get triggered
Late buyers panic
Momentum traders flip bearish

🔹 Zone 3 – The Expansion Phase

This is where fear usually becomes visible in the market narrative.

Technically, this zone represents:

A major demand test area
A potential long-term accumulation zone

Two things can happen here:

Strong Reaction: Price holds, volume spikes, and a relief rally starts.
Clean Breakdown: The market enters a deeper bearish phase with a longer consolidation cycle.

This zone is less about trading and more about understanding the market’s next major character shift.

Supply vs Demand – Who Is Really in Control?

🔴 Supply Zones (Upper Levels)

Every time price moves back into these areas, selling pressure appears quickly. This suggests that:

Larger participants are using rallies to reduce exposure, not to build new long positions.

🟢 Demand Zones (Lower Levels)

These are historical buying areas where:

Long-term players may step in
Volatility often increases

How Bitcoin behaves here will likely define the next multi-week trend.

Market Psychology – Why Most Traders Get Trapped

In phases like this, the market usually splits participants into two groups:

The Crowd

Buys every dip
Trades based on hope
Enters before confirmation

Smart Money

Waits for structure breaks
Trades around liquidity
Uses emotional moves as opportunity

Right now, the structure suggests that distribution is more active than accumulation.

What Comes Next? Possible Scenarios

📉 Bearish Path

Price continues to respect upper supply zones
Lower demand levels get tested
Volatility expands to the downside

⚖️ Neutral Path

Bitcoin forms a base near demand
Enters a consolidation range
Volume compresses before the next major move

📈 Bullish Surprise

Strong reclaim of the broken channel
Higher highs form with volume support
Trend structure flips back bullish

At the moment, bearish and neutral outcomes appear more likely based on structure alone.

Final Thoughts – Trade Structure, Not Emotion

Markets don’t move randomly. They move through phases of accumulation, expansion, distribution, and decline.

The current Bitcoin structure looks closer to distribution than accumulation.

For traders, this means:

Patience matters more than prediction.
Confirmation matters more than conviction.

Disclaimer

This article is for educational purposes only and does not constitute financial advice. Cryptocurrency markets are highly volatile. Always use proper risk management and confirm setups with your own strategy before trading.

If this breakdown helped you:

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