Bitcoin - Failed Recovery, Liquidity Below Becomes the TargetMarket Overview
Bitcoin is showing clear bearish intent on the daily timeframe. The broader structure has shifted to the downside, with price struggling to sustain any meaningful continuation higher. Daily momentum remains weak, and each attempt to reclaim higher levels is being met with aggressive selling. From a higher timeframe perspective, the market looks positioned to continue pressing lower in search of additional liquidity.
Initial Daily FVG Rejection
Price first tapped into a daily fair value gap and was immediately rejected. That reaction was not just a minor pullback, it marked a clear shift in intent. The rejection initiated downside continuation and set the tone for what followed. This move confirmed that higher timeframe sellers were active and defending that imbalance with conviction.
Break in Daily Structure
Following the initial rejection, price moved lower and broke daily structure. This was an important development, as it confirmed that the move was not just a temporary reaction but a genuine shift in market control. Once that structure failed, the previous bullish narrative was invalidated and the market transitioned into a bearish environment.
Second Daily FVG Rejection After Structure Break
After the structure break, price retraced back into a newly formed daily fair value gap, aligned with the level where structure previously failed. This area acted as resistance, and price once again rejected cleanly. This second rejection is key, as it shows sellers defending the same zone after the market context had already turned bearish. That alignment between structure and imbalance strengthens the case for continuation lower.
Lower Timeframe Reaction on the 1H Chart
On the one hour timeframe, the reaction at the first daily fair value gap was very telling. Price showed hesitation, followed by clear bearish displacement away from the zone. This lower timeframe behavior confirms that the daily imbalance was respected and actively sold into. The one hour structure supports the higher timeframe narrative and adds confidence that the rejection was not random but technically driven.
Conclusion
With the daily trend bearish, structure already broken, and repeated rejections from daily fair value gaps, the path of least resistance remains to the downside. As long as price continues to respect these higher timeframe imbalances as resistance, the expectation is for Bitcoin to move lower and take out additional lows before any meaningful reversal can be considered.
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