Bitcoin – Next Week Outlook: Liquidity Sweep Then Gap Fill

2 days ago

Bitcoin has been trading inside a broader downtrend, with repeated rejections at key resistance levels confirming bearish pressure. Recently, we saw price reject strongly at a 4H resistance zone, which set the stage for another leg down. However, before extending lower, there is still an unfilled CME gap above, and history shows that these gaps are often targeted before the market makes its next decisive move.

Liquidity Sweep
The most recent drop into the 108,500 zone appears to have created a potential liquidity sweep. Price dipped below a short-term low, likely grabbing stop losses and inducing traders into shorts, which could fuel a reversal back upward. This kind of move often signals accumulation before the market retraces higher.

CME Gap Dynamics
The CME gap between 114,000 and 116,000 remains unfilled, making it a strong magnet for price. Bitcoin has a clear tendency to revisit and fill these inefficiencies, and until that gap is resolved, I am leaning toward another upward push. The gap aligns with the rejection area from the previous resistance, so it would be a logical point for price to revisit before resuming the downward move.

Short-Term Scenarios
If Bitcoin holds above the recent liquidity sweep and builds strength on lower timeframes, I expect a climb back toward the CME gap. Once that gap is filled, the reaction from 115,000–116,000 will be key. If sellers defend that level again, the market could set up for another decline, targeting the lows around 109,000 and potentially lower. On the other hand, a clean break and acceptance above 116,000 would challenge the bearish bias, but for now that is less likely given the trend context.

Expectations and Targets
The primary expectation is for Bitcoin to rally back into the 114,000–116,000 zone to fill the CME gap. From there, I anticipate sellers to step in again, driving price back down toward 110,000 and possibly retesting the sweep lows. This sequence of liquidity sweep, gap fill, and bearish continuation would align with the current market structure.

Conclusion
In summary, Bitcoin has swept liquidity at the lows and now has unfinished business above with the CME gap. A move up into that gap looks probable before we see continuation to the downside. As long as price respects the 4H resistance zone after the gap is filled, I will maintain a bearish outlook with eyes on new lows afterward.

Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.

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2 days ago

Trade active

We closed below the low, not really sweeping it. Now this is not a big problem but i prefer a clean sweep. We could reject on the 4h fair value gap, come down once more to make a sweep and then reverse and make a new bullish move.