Bitcoin's Q4 Buy-Side Surge: Key Levels to Watch
Bitcoin Surges with Strong Buy-Side Momentum
Bitcoin (BTC) has posted a significant gain of 5.81% as of Tuesday, marking its largest daily increase since May. This surge has led to the formation of a bullish engulfing pattern on the daily chart, highlighting a key structural shift in the fourth quarter. Traders are now speculating on the possibility of a sustained recovery.
Key Insights
Bitcoin's bullish engulfing pattern marks its strongest daily rise since May, indicating potential trend expansion.
A daily close above $96,000 is necessary for full bullish confirmation.
Buy-side trading has peaked for the bull market, with the Coinbase Premium turning positive.
Market Structure and Critical Levels
Tuesday's rally in BTC established a higher high and higher low pattern, following a liquidity sweep below $84,000 on Monday, suggesting waning seller momentum. The breakout, characterized by strong volume, indicates genuine demand rather than a move driven by stop-loss hunting.
High-volume breakouts often result in more consistent follow-through, reflecting active participation by directional buyers rather than passive market makers.
A bullish break of structure (BOS) above $92,300 is emerging. A confirmed BOS would decisively shift the short-term trend upward, even if BTC temporarily revisits the fair value gap (FVG) between $90,000 and $88,000 while continuing its upward trajectory.
The daily chart requires a close above $96,000 for full conviction. This level is crucial as it represents a BOS on the higher time frame. Surpassing it would confirm a complete trend structure shift, not just a relief bounce.
Once $96,000 is reclaimed on a daily closing basis, BTC's immediate target zone extends to $102,000–$107,000, a range encompassing previous swing highs, unmitigated stop-loss pockets, and breakout trader liquidity above prior resistance levels.
In terms of market structure, these areas can act like magnets, with a decisive breakout clearing the final barrier at the $96,000 level.
Aggressive Buy-Side Flow and Improved Premium
CryptoQuant data indicated that the market buy-to-sell ratio spiked to 1.17, the highest reading since the cycle began in January 2023. Such aggressive buy-side dominance typically emerges early in expansion phases when structural flows accelerate.
Meanwhile, the Coinbase Premium Index shifted to a positive value of +0.03 after weeks of US selling pressure. Positive premium readings historically signal renewed institutional investor demand. Binance spot and perpetual volumes are also rising, and the price gap between Binance and Coinbase has tightened, reflecting healthier global liquidity.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.