HYPEUSDT | 4H Discount Bounce Into FVG Before Continuation Lower

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On the 4H timeframe, HYPEUSDT is currently trading in a bearish market structure, following a strong displacement move to the downside. The sequence of lower highs and lower lows confirms that the overall order flow remains bearish, with price currently sitting in discount territory.

After the impulsive selloff, price has begun to consolidate, suggesting a potential short-term retracement. Within the ICT framework, this type of behavior often leads to a corrective move into inefficiencies before the continuation of the primary trend.

A key level to watch is the Fair Value Gap (FVG) above current price, formed during the bearish displacement. This zone represents an imbalance where price moved too quickly, leaving unfilled orders. Markets tend to revisit such areas to rebalance before continuing lower.

The projected scenario shows price making a retracement upward into the FVG, potentially tapping into this imbalance and also targeting internal liquidity. Once the FVG is mitigated, the expectation is for price to resume its bearish movement, continuing toward Sell-Side Liquidity (SSL) below the recent lows.

From a trading perspective, the optimal approach is to wait for price to enter the FVG and then look for lower timeframe confirmation — such as a Change of Character (CHoCH) or Break of Structure (BOS) — to enter short positions in alignment with the higher timeframe bias.

Invalidation of this setup would occur if price breaks above the FVG with strong bullish displacement and begins forming higher highs, indicating a potential shift in market structure.

This is not financial advice. Always manage risk and wait for confirmation before entering trades.

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