After a clean drop that nearly tagged the psychological $100K level, Bitcoin printed a Swing Failure Pattern (SFP) — sweeping the lows and snapping back with strength. That bounce wasn’t just a reaction — it was a liquidity reclaim.
Now, price structure is shaping into a potential Inverted Head & Shoulders — a classic reversal pattern often forming before a bullish continuation.
🔍 Key Level to Watch:
$106,694.63 — This recent key high was just taken out. If we see rejection here (SFP), it could set up a high-probability low-risk short opportunity.
🎯 Short Trade Idea (Only on SFP confirmation):
✅ Cleaner setup with confluence from structure and liquidity — high probability if confirmed.
📚 Educational Insight: Why SFPs Work So Well
SFPs (Swing Failure Patterns) are some of the most powerful setups in trading because they:
Using SFPs in conjunction with key highs/lows, volume, and structure dramatically increases your edge.
📈 Why Order Flow Is Crucial for SFPs
1. See the Trap Form in Real Time
SFPs are essentially traps — price sweeps a key level, sucks in breakout traders, and then reverses. Order flow tools let you see this happen:
Without order flow, this is all hidden in the candles.
2. Confirm Liquidity Sweeps with Delta & CVD
3. Tight Entries with Confidence
When you see actual trapped volume or liquidation clusters at the SFP level, you can enter tighter with conviction — because you're not guessing, you’re reacting to actual intent and failure in the market.
4. Early Warning System for Reversal or Continuation
If the SFP fails to trigger a reversal (e.g. buyers step back in with strength), you’ll see it early in the flow — and can quickly reassess.
🧠 Bottom Line:
Order flow lets you stop guessing and start seeing the actual fight between buyers and sellers. Combine it with SFPs, and you're not just trading price — you're trading intent. That edge is huge.
_________________________________
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Now, price structure is shaping into a potential Inverted Head & Shoulders — a classic reversal pattern often forming before a bullish continuation.
🔍 Key Level to Watch:
$106,694.63 — This recent key high was just taken out. If we see rejection here (SFP), it could set up a high-probability low-risk short opportunity.
🎯 Short Trade Idea (Only on SFP confirmation):
- Entry: After price sweeps $106,694.63 and shows rejection
- Stop-Loss: Above wick high (e.g., ~$107.4K)
- TP Zones: $103.5K and $101.7K
- R:R: ~1:7
✅ Cleaner setup with confluence from structure and liquidity — high probability if confirmed.
📚 Educational Insight: Why SFPs Work So Well
SFPs (Swing Failure Patterns) are some of the most powerful setups in trading because they:
- Trap breakout traders
- Sweep liquidity and reverse quickly
- Offer clear invalidation (wick high/low)
- Allow for tight stop-loss and high R:R setups
Using SFPs in conjunction with key highs/lows, volume, and structure dramatically increases your edge.
📈 Why Order Flow Is Crucial for SFPs
1. See the Trap Form in Real Time
SFPs are essentially traps — price sweeps a key level, sucks in breakout traders, and then reverses. Order flow tools let you see this happen:
- A spike in market buys above resistance
- Followed by a lack of follow-through (no new buyers)
- And then an aggressive absorption or reversal (selling pressure hits)
Without order flow, this is all hidden in the candles.
2. Confirm Liquidity Sweeps with Delta & CVD
- Watch for a delta spike or Cumulative Volume Delta (CVD) divergence — a clear sign that aggressive buyers are getting absorbed.
- This gives you confirmation that the sweep failed, not just a random wick.
3. Tight Entries with Confidence
When you see actual trapped volume or liquidation clusters at the SFP level, you can enter tighter with conviction — because you're not guessing, you’re reacting to actual intent and failure in the market.
4. Early Warning System for Reversal or Continuation
If the SFP fails to trigger a reversal (e.g. buyers step back in with strength), you’ll see it early in the flow — and can quickly reassess.
🧠 Bottom Line:
Order flow lets you stop guessing and start seeing the actual fight between buyers and sellers. Combine it with SFPs, and you're not just trading price — you're trading intent. That edge is huge.
_________________________________
💬 If you found this helpful, drop a like and comment!
Want breakdowns of other charts? Leave your requests below.
🏆 Mastering Fibonacci for precision trading
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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.
🏆 Mastering Fibonacci for precision trading
🔹 Sharing high-probability trade setups
⚡ Unlock the power of technical analysis!
🔹 Sharing high-probability trade setups
⚡ Unlock the power of technical analysis!
Related publications
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.