Bitcoin (BTCUSD) previously traded inside a rising channel, maintaining a bullish structure until price reached a major resistance area. This zone triggered strong selling pressure, resulting in a sharp bearish impulse and a clear shift in market structure.
Key Technical Insights
🔴 Major Resistance (Supply Zone)
Price reacted aggressively from the marked RESISTANCE AREA, confirming the presence of institutional supply.
Multiple rejections at the channel top signaled bullish exhaustion.
📉 Break of Structure & Impulsive Sell-Off
The strong bearish candles represent high momentum displacement, breaking prior higher lows.
This move indicates smart money distribution at premium prices.
🧱 Liquidity Sweep & Demand Zone
Price swept sell-side liquidity below previous lows before stabilizing.
A clear demand zone has formed where price is consolidating, suggesting accumulation.
🌗 Consolidation & Volatility Compression
Small-bodied candles show indecision, often preceding a volatility expansion.
This phase typically occurs before a directional move.
Projected Price Scenario
📉 Short-Term Scenario
Possible final downside wick to collect remaining liquidity below the current range.
📈 Bullish Reversal Scenario
After liquidity is fully absorbed, BTC may reverse strongly and target the prior broken structure / resistance zone, now acting as a price magnet.
🎯 Upside Objective
The highlighted upper zone aligns with:
Previous supply
Key market structure highs
Premium price imbalance
Trading Bias & Strategy
Bias: Neutral → Bullish after confirmation
Confirmation Signals to Watch:
Bullish engulfing
Break of minor structure (BOS)
Strong bullish displacement from demand
⚠️ Risk Disclaimer:
This analysis is for educational purposes only. Always wait for confirmation and apply proper risk management.
