Bitcoin volume profile shows major demand for BTC is building

Bitcoin's price action has done little to offer investors with insight into its mid-term trend, as the cryptocurrency has formed a massive trading range between $10,000 and $12,000 throughout the past few weeks.

Despite the cryptocurrency's mid-term outlook remaining somewhat unclear due to the multiple hurdles it faces, the digital asset's volume profile indicates that its market structure is incredibly healthy.

The confluence of these factors seems to indicate that BTC could soon see significant further upside.

Bitcoin's volume profile bodes well for its near-term outlook.

At the time of writing, Bitcoin's price is peaking above $11,000 for the first time in over two weeks, marking a striking rise from its recent lows of $9,900 that were set just over a week ago.

While looking towards the cryptocurrency's volume profile it appears that it may be well-positioned to push even higher in the near-term.

Whalemaps, an analytics firm focused on on-chain metrics, explained that the recent dip front ran the major demand zone within the mid-$9,000 region and allowed the crypto to confirm a few key levels as support.

"Volume profile shows healthy PA. Lets not forget that we successfully retested a couple of major supports/trendlines + successfully front ran some major demand at 9500-9300. Looks good".

This crossover is also what took place just before the parabolic Bitcoin uptrend in 2017.

Because these crossovers have - without fail - taken place right before Bitcoin sees parabolic upswings, this could mean that a strong move higher is imminent.