Bitcoin Primed for Major Rally After Potential Price Correction to Clear Imbalances
Bitcoin's recent price action, following a bearish turn over the past weekend, has left crucial "Fair Value Gaps" (FVGs) that analysts believe must be addressed before a significant rally. According to crypto analyst Tehommas, these unfilled gaps indicate a period of uncertain movement as Bitcoin prepares to clear multiple liquidity levels, potentially paving the way for a breakout toward $120,000.
The Crucial Fair Value Gaps Dictating Price Movement
Tehommas's analysis highlights two primary FVGs positioned both above and below Bitcoin's current support level. The first, located above the $117,000 mark, is expected to be filled initially. This upward move would target a substantial pool of liquidity, triggering stop losses and potentially trapping investors who anticipate an immediate sustained breakout. This initial sweep is considered a necessary precursor to further price action. Following this potential upward swing to clear the upper FVG, a retracement is anticipated. The second FVG lies just above $111,000, below Bitcoin's recent lows recorded at the beginning of August. This decline would serve to clear additional internal liquidity, establishing a "clean position" for the cryptocurrency. Once both the upper and lower imbalances are efficiently addressed and liquidity is sufficiently "grabbed," the stage will be set for a significant directional expansion. This process, encompassing imbalance filling, liquidity grabbing, and subsequent expansion, is deemed essential for Bitcoin to complete its cycle and finally launch towards its ambitious target. However, analysts caution that a sustained move higher is improbable until both of these identified zones have been thoroughly resolved.
