Bitcoin's Price Action: A Shift in Momentum

The cryptocurrency market has witnessed a significant change in Bitcoin's trajectory. After reaching an impressive peak near $124,533, the digital asset's upward momentum has faltered, signaling a potential shift in market sentiment. The recent price action suggests a transition from a bullish trend to a more bearish phase, with key technical indicators pointing towards further downside potential.

Technical Analysis: Breaking Down the Structure

A critical Break of Structure (BOS) occurred at $112,879, where the price breached a previous swing low. This technical event is often interpreted as a signal of trend reversal, indicating that sellers may have gained the upper hand. As of now, there's no clear Change of Character (CHoCH) back to the upside, further reinforcing the notion that bearish forces are currently in control of the market.

Key Zones of Interest

The chart reveals a substantial demand zone between $92,000 and $99,000. Historically, this area has been a launching pad for Bitcoin, propelling it to new heights. However, the recent sharp rejection above the $120,000 mark suggests that this zone could be put to the test once again.

The midrange area around $111,000 to $112,000, which previously acted as support, has been decisively broken. This breach indicates a weakening of buyer interest at these levels. On the flip side, the region between $118,000 and $120,000 remains a strong supply zone, where prices dropped precipitously with minimal buyer intervention.

Current Market Dynamics

Bitcoin is currently retesting the $111,000 to $112,000 level, which was recently breached to the downside. The price action in this area is characterized by rejection wicks and hesitation, suggesting that selling pressure is capping any upside attempts. Market analysis points towards a potential move down to the $98,730 level, with expectations of another leg down into the larger demand zone.

Trade Outlook and Risk Management

The prevailing trade bias leans bearish. The anticipated price movement is downward, targeting the $98,700 level, with a possible extension into the $92,000 to $94,000 demand zone if downward momentum intensifies.

Traders should note that a decisive daily close above $113,000 would invalidate this bearish scenario and potentially open the path for a retest of the $118,000 to $120,000 range.

Market Momentum and Candle Analysis

Current momentum favors sellers, with downward moves appearing impulsive while rallies seem corrective. Recent candle formations display long upper wicks and smaller real bodies, consistent with supply absorption. The market sentiment is likely to remain bearish unless strong bullish candles manage to break through the overhead resistance levels.

It's crucial for traders and investors to approach the market with caution, considering the volatile nature of cryptocurrency trading. Always conduct thorough research and consider risk management strategies before making any investment decisions.