FX.co ★ Konnect2fx | #Bitcoin chart analysis

BTCUSD H4 — Pure Chart-Based SMC Analysis 1. Overall Market Structure The BTCUSD H4 chart shown is displaying a clear structural transition from a prolonged consolidation/distribution-type range into a strong bullish expansion. At the beginning of the visible chart, price is moving around the 77,000–81,000 region with repeated swings and no sustained directional expansion. Price then gradually declines toward the 75,000 area, where the market forms a visible low and begins to build a base. From that lower area, the structure changes as price starts creating higher lows and progressively higher highs. The most important development occurs in the right-hand portion of the chart, where price moves strongly upward from the approximately 77,000–78,000 area, breaks above the previous consolidation structure, and eventually expands toward the 85,000–86,000 region. The latest displayed candle information is 85866.54 / 85954.96 / 85360.18 / 85718.23, with the closing value shown around 85,718.23. Therefore, based strictly on the visible candles, the immediate structure is bullish, although the latest candles show some hesitation after the sharp upward displacement. The market is no longer behaving like the earlier sideways structure; it has produced a significant bullish expansion and is now consolidating near the upper part of that expansion. 2. SMC Concept and Change of Character From an SMC perspective, the important feature is the transition from the earlier range into a bullish sequence. Price initially spends considerable time fluctuating between approximately the mid-75,000s and low-80,000s. During this period, neither buyers nor sellers maintain continuous control. The major structural clue appears after price reaches the lower region around 75,000–76,000 and begins recovering. Instead of continuing to make progressively lower lows, the candles start producing higher lows. Later, price breaks through previous swing highs around the upper-70,000 to low-80,000 region. This behavior can be interpreted from the chart as a bullish Change of Character (CHOCH) followed by Break of Structure (BOS). The strongest confirmation comes from the large bullish displacement on the right side of the chart. That displacement is considerably stronger than many of the preceding individual candles, showing that the market has moved out of the previous range with momentum. The SMC reading therefore remains structurally bullish on the visible H4 data, while the current consolidation should be treated as a reaction/consolidation phase after displacement rather than automatically as a new bearish structure. 3. Liquidity and Sell-Side Liquidity The chart contains several areas where liquidity can be considered from the visible swing structure. The lower region around 75,000–76,000 is particularly important because price repeatedly interacted with this area before establishing the subsequent bullish recovery. This region represents visible sell-side liquidity (SSL) beneath previous lows. Price's movement around that lower area created a base from which the later bullish expansion developed. There are also smaller sell-side liquidity pools beneath the successive higher lows formed during the recovery. These lows become increasingly important because they represent locations where protective sell-side orders or stop liquidity may be concentrated below obvious swing points. The chart does not show a direct future liquidity sweep, so it would not be correct to claim that a particular liquidity pool will definitely be taken. What can be observed is that the market has already demonstrated strong rejection from the lower structure and has subsequently moved upward. Therefore, the visible SSL structure currently sits below the recent bullish sequence, while the latest price action is operating substantially above those earlier lows. 4. Buy-Side Liquidity The most obvious buy-side liquidity (BSL) on the chart is located above previous swing highs. Before the final bullish expansion, the market repeatedly formed highs around the approximately 81,000–82,000 region. These previous highs created an obvious pool of liquidity. Price eventually moved through this region with strong bullish displacement. This is important because the market did not simply touch the previous high and reverse; it continued higher and created a much larger expansion toward the 85,000–86,000 area. On the current right-hand side, the recent high around the 86,000+ region also becomes a visible short-term buy-side liquidity reference. The latest candles are positioned just below/around this high, meaning the market is currently consolidating near recently established highs. From the chart alone, this area can be monitored as a liquidity-sensitive region. A clean continuation above the recent high would represent another structural expansion, while a rejection could produce a retracement toward the nearest internal liquidity and imbalance areas. No future direction is assumed; the important point is that the latest high is now a clearly visible liquidity reference. 5. Order Block Analysis The strongest bullish Order Block concept on this chart is associated with the final consolidation/base before the powerful bullish displacement on the right side. Before the major upward move, price spends time around the high-70,000s and then begins accelerating upward. The candles immediately preceding the strong displacement can be treated as an area of potential bullish institutional order flow because the subsequent move leaves that region with significant momentum. A bullish Order Block is more meaningful when the following candles produce a clear structural break, and the chart visibly provides that relationship. Earlier consolidation areas around the 77,000–80,000 region also contain potential bullish order-flow zones, but the most recent displacement-related base is structurally more relevant to the current price action. The chart does not provide enough information to claim that every small candle is an Order Block, so the analysis should remain focused on the clear areas that preceded substantial displacement. If price later retraces into such a zone, its reaction would provide more information about whether the bullish order flow remains respected. 6. FVG and FVG With Order Block The strongest upward displacement on the right side of the chart appears to have created areas of inefficient price delivery, which can be viewed through the Fair Value Gap (FVG) concept. The rapid sequence of bullish candles from the approximately 80,000 region toward the 84,000–86,000 region shows comparatively aggressive price delivery with limited overlapping compared with the earlier consolidation. Such displacement can leave an imbalance or FVG behind. The important SMC principle visible here is that price has moved away from the prior trading area rapidly instead of developing a slow two-sided auction. Where a bullish FVG overlaps or sits close to the bullish Order Block created before the displacement, that region becomes a potentially important FVG with Order Block area. These zones should not be treated as guaranteed support; their significance comes from the combination of displacement, structure break, and the origin of the move. On this chart, the most relevant imbalance areas are beneath the latest high and within the path of the strong bullish expansion. A retracement into such an area would show whether price is returning to rebalance inefficient delivery.

7. Trend-Line Liquidity The earlier portion of the chart shows a developing sequence of swing points that can be connected conceptually through a bullish trend structure. Once price establishes the low around the mid-75,000s and begins producing higher lows, those lows become important for trend-line liquidity. The market does not rise in a perfectly straight line; instead, it advances through impulses followed by consolidations and smaller pullbacks. Each higher low creates another potential liquidity reference. The most recent bullish leg is particularly strong, and the short-term consolidation near 85,700–86,000 is now forming a new local structure. If additional higher lows develop, they would strengthen the visible bullish trend-line structure. Conversely, a decisive break beneath an important recent higher low would weaken that short-term trend structure. The chart currently shows price holding substantially above the major lower swing structure, so the broader visible trend remains upward. The important point is that trend-line liquidity should be identified from actual swing points shown on the chart rather than from an imagined line that is not supported by the candle formation. 8. No Supply and No Demand Candles The chart also provides useful information through No Supply and No Demand candle concepts. During the earlier consolidation, there are numerous relatively small candles where price moves sideways and volume contracts compared with the stronger expansion candles. These areas show reduced immediate directional participation and can be interpreted as periods where the market is temporarily balanced. In the bullish portion of the chart, several small bearish or neutral candles appear during the upward progression without producing significant structural damage. Such candles can be examined as potential No Supply behavior when selling pressure becomes limited and price continues to hold higher levels. Near the latest high, however, the candles become smaller and more compressed after the large bullish move. This shows temporary hesitation rather than automatically confirming a reversal. A genuine No Demand interpretation would require observing weak upward progress and subsequent confirmation from price action. Therefore, the current small candles near 85,700–86,000 should be treated as consolidation/indecision until the chart provides a clearer displacement or structural break. 9. Volume Confirmation From the Chart The volume panel provides important confirmation of the major structural movement. Earlier in the chart, volume fluctuates considerably, with several spikes appearing during individual moves and reactions. As the market approaches the lower structural region around 75,000–76,000, volume remains active during the turning process. Later, during the bullish expansion, volume increases noticeably, particularly around the stronger upward movements. The largest volume activity appears around important displacement phases rather than during every small consolidation candle. This relationship is important because the strongest price expansion toward the 80,000s and then the 85,000+ region is accompanied by visible volume participation. At the extreme right, after the sharp rise, volume remains elevated around the expansion but begins to reduce as price consolidates near the high. This combination—strong expansion followed by smaller candles—is consistent with a market temporarily pausing after an impulsive move. It does not independently prove continuation or reversal, but it gives useful confirmation that the major bullish displacement visible on the chart was accompanied by increased participation. 10. Current Price Action Around 85,718.23 The latest displayed price is approximately 85,718.23, while the latest candle's visible values are 85,866.54 high/open-area information, 85,954.96 high, 85,360.18 low, and 85,718.23 close as shown in the chart header. The latest candles are positioned close to the upper boundary created by the recent bullish expansion. The market first accelerated strongly upward, reached the area above 85,000, produced a local high near the upper-80,000 region, and then printed a small reaction. The current candles are now holding around the 85,700 area rather than immediately collapsing back into the earlier 81,000 region. This means the chart currently shows bullish consolidation near the highs. The key observation is not that price must continue upward, but that the latest candles have not yet produced a visible bearish BOS on the displayed H4 structure. Therefore, the immediate price action should be monitored through the recent high, the latest higher lows, and the bullish displacement area underneath. 11. BOS, MSS and Possible Reaction Zones The visible structure provides a sequence that can be organized as MSS/CHOCH → BOS → displacement → consolidation. The market first stopped producing the previous declining structure, established a low, and began creating higher lows. The subsequent break of previous swing highs provided the structural confirmation. The major bullish expansion then strengthened the BOS interpretation. Now the market is consolidating near the top of the expansion. For SMC analysis, the most important reaction zones are therefore the recent bullish Order Block, the associated FVG/FVG-with-Order-Block region, the latest higher lows, and the liquidity resting around the recent highs. If price retraces, the reaction from these areas would reveal whether the bullish structure is being respected. If price instead breaks and holds above the recent high, that would represent fresh bullish structural expansion. If price breaks important recent higher lows and produces a bearish displacement, the short-term structure would need to be reassessed. These are chart-based structural conditions rather than predictions. 12. Final Chart-Based SMC Conclusion Purely from the BTCUSD H4 chart provided, the dominant visible structure is bullish. The market moved from a prolonged range and lower structure around 75,000–78,000 into a sequence of higher highs and higher lows, followed by a strong bullish displacement toward the 85,000–86,000 region. The major bullish move is supported by visible increases in volume, while the current candles are smaller and more compressed near the recent high, indicating consolidation after expansion. The major SMC references are the sell-side liquidity beneath previous lows, buy-side liquidity above previous swing highs, bullish Order Block around the origin of the major displacement, FVG created during the rapid bullish expansion, FVG with Order Block where these structures overlap, and trend-line liquidity formed by successive higher lows. The latest price around 85,718.23 is therefore sitting in an important upper-range area rather than in the middle of the earlier consolidation. The chart has not visibly produced a major bearish BOS after the latest bullish displacement. Consequently, the cleanest way to read this chart is to respect the existing bullish H4 structure while monitoring how price reacts to the recent high, recent higher lows, and the bullish imbalance/order-flow zones underneath. No external market data, news, indicators, or internet information has been used in this analysis; the observations above are based only on the candles, price levels, structure, and volume visible in your supplied BTCUSD H4 chart.