Bitcoin Battles Key Demand Zone as Price Action Hints at Next Big Move

• Bitcoin trades at $98,139, testing demand zones while facing resistance at $108,353, keeping the market in a range.
• Strong support at the $90,500 and $92,000-$95,000 demand zones prevent deeper declines, but $85,072 remains a key downside level.
• A breakout above $100K could trigger bullish momentum, while failure to hold support may push Bitcoin toward $80,000-$82,000.

Bitcoin has entered a critical demand zone after tagging an untapped daily support level near the yearly open. The cryptocurrency experienced a strong bounce, reaching December’s mid-range, which currently acts as resistance. The market remains within a range, and traders are monitoring key levels before making further moves. While the primary focus is on long positions during retracements, alternative scenarios suggest potential downside risks.

Market Structure and Key Levels

Bitcoin is currently trading around $98,139, reflecting a 0.66% decline. The December high at $108,353 serves as a significant resistance level. The price previously tested this area but failed to sustain momentum, leading to a pullback. On the downside, the December low at $90,500 has provided strong support in the past, triggering rebounds whenever tested.

Additionally, a crucial demand zone between $92,000 and $95,000 remains active, as buyers have stepped in to prevent deeper declines. Bitcoin briefly dipped below this zone before recovering, indicating strong market participation. If this zone fails to hold, the next critical support lies at $85,072, marked as a Fair Value Gap (FVG), which could play a major role in future price action.

Potential Scenarios and Price Action

Bitcoin’s price structure suggests a continuation within the current range unless a major breakout occurs. The primary scenario anticipates a retracement, with traders looking for long opportunities within the demand zone. If Bitcoin maintains its current momentum, the first target for range expansion would be between $120,000 and $125,000.

However, a secondary scenario suggests that Bitcoin may be forming a lower high after a strong bounce. Given the recent wipeout of leveraged positions, this could result in another leg down. If this occurs, Bitcoin may test the $85,000 level, aligning with the midpoint of the monthly FVG. Additionally, the $80,000 to $82,000 range represents a strong support zone, marking the previous year’s value area high.