1. Broader Market Structure
1.1 Change of Character (CHoCH)
A clear Change of Character occurred at $290.53, where price broke below a prior higher low. This was a key early signal of a potential bearish reversal, as bullish momentum began to weaken and sellers stepped in with conviction.
1.2 Break of Structure (BOS)
Following the CHoCH, a Break of Structure was confirmed at $289.29. Price broke below the prior swing low, confirming a transition to a bearish market structure and validating the developing downtrend.
2. Supply and Demand Zones
Supply and demand zones are pivotal in understanding institutional behavior and predicting likely areas of price reaction.
2.1 Demand Zones (Green)
These zones mark levels where buying pressure has historically been strong, often signaling areas of institutional accumulation.
Zone A: $276.00 – $277.50
Most recent reaction zone with a long lower wick on July 23.
Indicates strong buy-side interest and likely first level of defense if price pulls back.
Zone B: $270.00 – $272.50
A deeper demand zone, formed around July 14–15.
Represents a base for the previous bullish rally and acts as a swing-level support.
Zone C: $269.00 (extreme low)
A structural low marking the last major demand level before a trend breakdown.
A violation here would shift sentiment toward a longer-term bearish outlook.
2.2 Supply Zones (Red)
These are areas of historical selling pressure, often aligning with distribution phases or resistance from unfilled institutional sell orders.
Zone X: $282.50 – $284.00
Formed during the sharp selloff on July 22.
The first upside resistance where sellers may re-enter.
Zone Y: $288.00 – $290.53
High-timeframe supply aligning with the CHoCH and swing high.
Significant distribution zone that must be broken decisively to confirm bullish reversal.
3. Price Action Within the Bordered Region
Price is currently trading around $279.58, just above the local demand zone.
Expecting a pullback into the $276–$277.50 zone (Zone A), allowing liquidity collection and re-entry from institutional buyers.
If this demand zone holds and price forms a higher low, a bullish continuation is likely—targeting the $282.50–$284.00 supply zone.
A further break above this area could attempt to revisit the macro supply at $288–$290.53.
Invalidation: A clean break and close below $276.00 would expose the price to deeper downside into Zone B or Zone C.
1.1 Change of Character (CHoCH)
A clear Change of Character occurred at $290.53, where price broke below a prior higher low. This was a key early signal of a potential bearish reversal, as bullish momentum began to weaken and sellers stepped in with conviction.
1.2 Break of Structure (BOS)
Following the CHoCH, a Break of Structure was confirmed at $289.29. Price broke below the prior swing low, confirming a transition to a bearish market structure and validating the developing downtrend.
2. Supply and Demand Zones
Supply and demand zones are pivotal in understanding institutional behavior and predicting likely areas of price reaction.
2.1 Demand Zones (Green)
These zones mark levels where buying pressure has historically been strong, often signaling areas of institutional accumulation.
Zone A: $276.00 – $277.50
Most recent reaction zone with a long lower wick on July 23.
Indicates strong buy-side interest and likely first level of defense if price pulls back.
Zone B: $270.00 – $272.50
A deeper demand zone, formed around July 14–15.
Represents a base for the previous bullish rally and acts as a swing-level support.
Zone C: $269.00 (extreme low)
A structural low marking the last major demand level before a trend breakdown.
A violation here would shift sentiment toward a longer-term bearish outlook.
2.2 Supply Zones (Red)
These are areas of historical selling pressure, often aligning with distribution phases or resistance from unfilled institutional sell orders.
Zone X: $282.50 – $284.00
Formed during the sharp selloff on July 22.
The first upside resistance where sellers may re-enter.
Zone Y: $288.00 – $290.53
High-timeframe supply aligning with the CHoCH and swing high.
Significant distribution zone that must be broken decisively to confirm bullish reversal.
3. Price Action Within the Bordered Region
Price is currently trading around $279.58, just above the local demand zone.
Expecting a pullback into the $276–$277.50 zone (Zone A), allowing liquidity collection and re-entry from institutional buyers.
If this demand zone holds and price forms a higher low, a bullish continuation is likely—targeting the $282.50–$284.00 supply zone.
A further break above this area could attempt to revisit the macro supply at $288–$290.53.
Invalidation: A clean break and close below $276.00 would expose the price to deeper downside into Zone B or Zone C.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Looking for powerful AI trading signals? Visit ProSignal.ai and take your trading to the next level! or join our telegram channel at t.me/prosignalai
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.