Let's start with the basics: above swing highs and below swing lows are the most liquid areas of the market, where the price is most attracted. In recent days, we’ve seen Bitcoin create a new ATH just above the previous ATH.

This was a zone full of liquidity.

What usually happens after a liquidity-rich zone is taken?

A temporary market reversal occurs.

Scalpers know this well because they see these types of movements happening constantly every day.

The price starts to crash.

The narrative suggests it’s due to news of Trump announcing 100% tariffs on China. But the market is no stranger to such news

How could it react this way?

As ALWAYS, news is just the tip of the iceberg that triggers impulsive movements.

For an impulsive movement to occur, it must FIRST be built on the chart. In this case, we see a difficult and slow climb toward the new ATH, which can result in an accumulation of orders.

This order accumulation drives the price to reach the liquidity pool above the previous ATH, completing the accumulation that pushed the price to the top.

Now that the liquidity at the previous swing high has been taken, where’s the next liquidity area to target? At all the swing lows present during the accumulation phase. And not only that.

Why didn’t the price stop at taking liquidity just from this last accumulation phase and instead pushed even lower?

Because the market structure has been very extended for a long time, and since June 22, we haven’t seen liquidity taken below significant lows.

So, the price ignored every internal structure, every internal FVG, every minor swing low to collect all the remaining liquidity until it stopped at a key area.

The same support area that held the liquidity grab on June 22. The same area keeping the price above $100k. The same area serving as a psychological level. The same area presenting a significant FVG that, once rebalanced, became a support for the market structure.

What’s next?

We have several possibilities, but we’ll analyze them in the coming posts.