Bitcoin recently swept the liquidity resting at the $78K level, taking out the previous lows before initiating a strong reversal with a double break of structure to the upside. This signals that smart money has engineered liquidity to trap retail traders and induce early shorts before driving price in the intended direction.
The move up has left behind a well-defined bullish order block in confluence with a fair value gap, which held firmly on the retracement. This confirms that institutional positioning is present, and the market is now efficiently repricing higher. The fact that price reacted strongly from this zone further reinforces that smart money has absorbed sell-side liquidity, and the path of least resistance is now to the upside.
With liquidity now resting above the descending bearish trendline, price has a clear target. The bearish trendlines, especially in the context of a corrective move, act as a liquidity magnet. Retail traders shorting into this structure are providing the fuel for the next leg up, as their stops accumulate above each lower high. The market makers and algorithmic liquidity providers understand this, and price is now gravitating towards that liquidity pool. The inefficiencies left on the chart from the recent aggressive down move also suggest that these imbalances need to be filled, further strengthening the case for continued bullish expansion.
The entire bearish move preceding this was nothing more than a well-structured inducement. It served to lure in breakout sellers, create the illusion of a sustained downtrend, and trap liquidity at the lows before the true direction was revealed. This is a classic example of manipulation before expansion. This principle repeats across all timeframes and market conditions.
With this in mind, the most probable scenario now is a continuation towards the next major liquidity pool above the bearish trendline, likely leading price into the 92K–98K range where a significant daily order block sits. This area will be critical to observe, as it could act as a distribution zone where smart money starts offloading positions. However, until then, the structure remains decisively bullish, and every retracement into demand zones should be seen as an opportunity to position long, rather than a sign of weakness.
The move up has left behind a well-defined bullish order block in confluence with a fair value gap, which held firmly on the retracement. This confirms that institutional positioning is present, and the market is now efficiently repricing higher. The fact that price reacted strongly from this zone further reinforces that smart money has absorbed sell-side liquidity, and the path of least resistance is now to the upside.
With liquidity now resting above the descending bearish trendline, price has a clear target. The bearish trendlines, especially in the context of a corrective move, act as a liquidity magnet. Retail traders shorting into this structure are providing the fuel for the next leg up, as their stops accumulate above each lower high. The market makers and algorithmic liquidity providers understand this, and price is now gravitating towards that liquidity pool. The inefficiencies left on the chart from the recent aggressive down move also suggest that these imbalances need to be filled, further strengthening the case for continued bullish expansion.
The entire bearish move preceding this was nothing more than a well-structured inducement. It served to lure in breakout sellers, create the illusion of a sustained downtrend, and trap liquidity at the lows before the true direction was revealed. This is a classic example of manipulation before expansion. This principle repeats across all timeframes and market conditions.
With this in mind, the most probable scenario now is a continuation towards the next major liquidity pool above the bearish trendline, likely leading price into the 92K–98K range where a significant daily order block sits. This area will be critical to observe, as it could act as a distribution zone where smart money starts offloading positions. However, until then, the structure remains decisively bullish, and every retracement into demand zones should be seen as an opportunity to position long, rather than a sign of weakness.
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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.
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.