BEARISH 📉 : Bitcoin faces potential downside due to liquidity traps

Bitcoin is currently positioned between two significant liquidity pools. Both bullish and bearish pressures are mounting, with the direction of the next major price move uncertain.

Key Liquidity Zones

  • The primary focus is on a High-Timeframe (HTF) liquidity pool around $65,300. This zone is crucial for identifying long positions, with strategies involving waiting for price penetration and confirmation of reversal patterns.
  • Local short-selling opportunities exist before reaching the lower HTF liquidity. A key point is the M15 liquidity sweep near $69,900, initiating short positions after confirming a bearish market structure break.
  • Above $71,450, further liquidity suggests potential for short-selling if Bitcoin sweeps this level and shifts back towards the $65,300 target.

Bitcoin

Market Dynamics

  • Bitcoin's 24-hour heat map indicates strong liquidity clusters, with the market potentially being pulled by these liquidity magnets.
  • A downside liquidity pool exists between $67,800–$68,200, presenting an attractive target for a liquidity sweep.
  • On the upside, short squeeze potential is noted between $71,500 and $72,500, contingent on Bitcoin sustaining levels above $70,000.
  • The price is compressed between major liquidity blocks, suggesting a likely sweep below $68,000 before any significant upward move towards $72,000–$76,000.

Bitcoin