Teacup Chart Pattern — Brewing Bullish MomentumSup, legends! Shall we tea it up? ☕
Today, we’re not just talking about your morning cuppa. We’re diving into something traders get excited about — the Teacup Chart Pattern. Just like a perfect brew, this pattern takes time to form, and knowing how to spot it can make your trading experience much smoother.
What Is the Teacup Chart Pattern?
The teacup chart pattern is a bullish continuation setup that resembles the shape of a tea cup when plotted on a price chart. It typically forms after an extended uptrend, signaling a consolidation phase before the asset resumes its upward trajectory.
Key characteristics of the tea cup pattern include:
A rounded bottom that reflects a gradual shift from selling pressure to buying support.
A slight pullback, known as the "handle," which represents a brief pause or shakeout before the next move.
A breakout above the resistance line at the cup’s rim, often accompanied by strong trading volume.
Anatomy of the Teacup and Handle Pattern
To apply teacup pattern trading effectively, traders must understand the structure:
The Cup – This is the rounded consolidation. It can take several weeks or months to form, depending on the timeframe. A smoother curve is generally considered stronger than a sharp V-shaped recovery.
The Handle – Following the cup’s formation, price action typically retraces slightly, creating a downward or sideways movement. This handle reflects short-term profit-taking and helps “reset” market sentiment.
The Breakout – Once the handle is complete, a breakout above the cup’s rim confirms the tea cup trading pattern and signals renewed bullish momentum.
Trading the Teacup Pattern
When approaching tea cup pattern trading, consider the following strategies:
Entry Point : A common entry is at the breakout above the rim of the cup, once volume confirms the move.
Stop Loss Placement : Traders usually place stops slightly below the handle’s low to minimize downside risk.
Target Projection : The potential price target can be estimated by measuring the depth of the cup and projecting it upward from the breakout point.
Why the Teacup Trading Pattern Works?
The teacup trading pattern embodies market psychology. The rounded cup reflects gradual accumulation, while the handle signals a controlled pullback that shakes out weak hands. When the breakout occurs, it often triggers a surge of buying pressure from both breakout traders and those re-entering the market.
For crypto traders, the tea cup chart pattern is particularly valuable because digital assets are prone to sharp moves. Recognizing this structure early can provide an edge in catching strong upside momentum.
Common Mistakes in Teacup Pattern Trading
Even experienced traders can misinterpret the teacup chart pattern. Some common pitfalls include:
Mistaking a sharp V-shaped rebound for a valid cup formation.
Entering too early, before the handle completes.
Ignoring volume confirmation, which often validates the breakout’s strength.
Patience and discipline are critical in successfully applying the tea cup pattern trading strategy.
Final Thoughts
The teacup and handle pattern is one of those OG bullish setups in crypto that just works when you read it right. Think of it as the market taking a chill before the next leg up. You spot the rounded cup, wait out that handle fake-out, and when volume kicks in — that’s your green light.
With crypto’s crazy volatility, the teacup trading pattern can be a solid way to catch continuation moves and ride some serious momentum. Just don’t ape in blind — always stack confirmations. Watch the volume, line it up with MAs or momentum tools, and filter out the noise. The pattern’s strong, but context is king if you don’t wanna get trapped in a fake breakout.
Trade ideas
TradeCityPro | Bitcoin Daily Analysis #196👋 Welcome to TradeCity Pro!
Let’s go over Bitcoin's analysis. The price is moving down again, so let’s review Bitcoin's movement together.
⏳ 1-Hour Timeframe
Yesterday, we had a trigger at the $115,698 zone, but the price couldn't sustain above this level, and Bitcoin's downward movement has started again.
✔️ A double top pattern has formed in this timeframe, and the trigger for this pattern activation was $113,991, which has now been activated. With the large volume, the price has managed to stabilize even below the $111,278 zone.
💥 The RSI oscillator has once again entered Oversell, and the price has reached near our support zone.
⚡️ If this support zone is broken, we can open a short position. Otherwise, I won’t be opening any short positions with other triggers.
📈 For a long position, we need a very strong reaction and significant bullish momentum at the support zone. In this case, the main trigger for a long would be $115,698, but we can also use earlier triggers if they form.
📊 For now, I will wait to see how the price reacts to the zone and then look for the trigger. The only trigger I have at the moment is $115,698.
❌ Disclaimer ❌
Trading futures is highly risky and dangerous. If you're not an expert, these triggers may not be suitable for you. You should first learn risk and capital management. You can also use the educational content from this channel.
Finally, these triggers reflect my personal opinions on price action, and the market may move completely against this analysis. So, do your own research before opening any position.
Bitcoin Update: Bearish Divergence on RSI Only Deepens This is a brief update to the analysis shared in August. The RSI has now formed a fourth consecutive lower peak on the weekly chart, further confirming the bearish divergence.
Monitor the RSI closely — a break below 50 (currently at 53) could signal the onset of a bear market.
The first key support level is near 102K, and a decisive move below this level would strengthen the bearish outlook.
Lingrid | BTCUSDT Sharp Drop Creates Buying OpportunityThe price perfectly fulfilled my previous idea . BINANCE:BTCUSDT rebounded sharply from the 102,100 support level after a flash crash, signaling renewed demand near structural lows. Price action remains inside a wide consolidation range, with the 119,500 target acting as a key resistance level. A sustained price movement above the trendline could confirm recovery momentum toward ATH at 125,000. The flash crash likely shook out weak hands before market stabilization and potential re-accumulation.
⚠️ Risks:
Another liquidity flush below 108,000 could trigger panic selling.
Broader risk-off sentiment across crypto could delay recovery.
Failure to reclaim 119,500 may reinforce short-term bearish pressure.
If this idea resonates with you or you have your own opinion, traders, hit the comments. I’m excited to read your thoughts!
Risk On/Off: How Global Correlations Tell You Money Flow🔵 Risk On / Risk Off: How Global Correlations Tell You Where Money Is Flowing
Difficulty: 🐳🐳🐳🐋🐋 (Intermediate+)
This article is for traders who want to understand how global capital flow affects market behavior — from equities and crypto to gold and bonds. Learning to read “Risk On” and “Risk Off” regimes helps you anticipate big shifts before they hit your chart.
🔵 INTRODUCTION
Markets are not independent islands — they are connected by one universal force: liquidity flow .
When investors feel confident, they move capital into riskier assets like stocks and crypto — this is called Risk On .
When fear dominates, capital flows back into safety — bonds, gold, and the U.S. dollar — known as Risk Off .
Recognizing this rotation allows traders to align their bias with the flow of global capital rather than fighting it.
🔵 WHAT IS “RISK ON”
Risk On is a market environment where investors seek higher returns, volatility is subdued, and capital flows into assets with greater reward potential.
Typical Risk-On behavior:
S&P 500, Nasdaq, and other equities trend higher
Bitcoin and crypto assets outperform traditional markets
U.S. Dollar Index (DXY) weakens as money moves abroad
Bond yields rise moderately as investors leave safe assets
Gold often consolidates or declines
In simple terms: Money chases opportunity.
🔵 WHAT IS “RISK OFF”
Risk Off describes defensive conditions — fear rises, volatility expands, and liquidity seeks safety.
Typical Risk-Off behavior:
S&P 500 and risk assets decline
Bitcoin and altcoins drop sharply
DXY strengthens as investors move into USD
Bond yields fall as money enters treasuries
Gold rallies as a safe-haven hedge
In simple terms: Money runs to safety.
🔵 HOW TO DETECT RISK SHIFTS
Market regimes don’t flip instantly — they rotate through correlated behavior.
To identify the shift between Risk On and Risk Off, monitor key macro instruments together:
DXY (Dollar Index): Rising DXY = Risk Off sentiment, Falling DXY = Risk On.
SPX / NASDAQ: Strong uptrends = Risk On, persistent weakness = Risk Off.
BTC vs DXY: Inverse correlation; BTC strength with DXY weakness = liquidity expansion.
Bond Yields (US10Y): Rising = optimism, Falling = risk aversion.
VIX Index: Below 15 = complacent Risk On, Above 25 = fearful Risk Off.
🔵 THE GLOBAL LIQUIDITY CYCLE
Liquidity always moves in phases — expansion, acceleration, contraction, and reset.
Phase 1 – Liquidity Expansion: Central banks inject liquidity → Risk On begins.
Phase 2 – Overextension: Assets rally strongly, leverage increases, volatility stays low.
Phase 3 – Liquidity Contraction: Monetary tightening or policy shocks trigger Risk Off.
Phase 4 – Repricing & Reset: Markets bottom as new liquidity returns.
Understanding this rhythm helps traders avoid confusion when markets seem “irrational” — because they’re not, they’re simply rotating through the liquidity cycle.
🔵 USING RISK ON/OFF IN TRADING
Even technical traders benefit from recognizing global risk regimes.
By aligning with the dominant liquidity direction, setups gain higher probability.
Crypto traders: Use SPX, DXY, and VIX correlations to confirm momentum.
Stock traders: Track gold and yields to gauge investor confidence.
Forex traders: Trade USD pairs according to global sentiment.
Swing traders: Filter trade bias by checking the current global regime.
Tip: When correlations align (e.g., DXY up, SPX down, BTC down), expect trend continuation.
When they diverge, volatility or reversals are likely.
🔵 ADVANCED TOOLS TO WATCH
Global Liquidity Index: Track combined balance sheets of the Fed, ECB, BOJ, and PBC.
Stablecoin Supply (Crypto): Expanding supply = liquidity entering market.
Yield Curve (10Y–2Y spread): Falling = caution, Rising = recovery.
Funding Rates: Confirm risk sentiment via leverage buildup.
🔵 CONCLUSION
All markets are connected through liquidity.
Risk On and Risk Off regimes describe how that liquidity rotates between return and safety. By tracking global correlations — equities, bonds, gold, DXY, and crypto — traders gain a powerful macro filter to stay on the right side of momentum.
Liquidity creates direction. Correlation confirms conviction.
If you learn to read the global flow, your technical analysis will finally make sense in the bigger picture.
Do you track global correlations in your analysis? What’s your favorite Risk-On or Risk-Off indicator?
BTC market snapshotBTC broke the trendline and the daily 200 MA. We’re now working out the monthly TF divergence. If we don’t reclaim 108K in the next day or two, there’s not much support around 100K. The major support zone is at 78–80K.
On the 12h TF, there are signs of oversold conditions. Let’s see if buyers can stop the train.
Simple is good. Now take profits with this Sucker’s Rally.Simple is good. The DCA box worked out perfectly — people were too bullish at the top and too bearish at the bottom.
The question is: “Is this enough?”
I don’t think so. Because normally, after moves this catastrophic, people don’t rush to long immediately. But this time, it’s like the whole market adopted a “buy the dip” attitude overnight.
That’s why I think levels below 100k still scare most people — which makes them interesting. A 98–99k liquidity wick would make perfect sense… but not yet.
LTF view: Watch the 116–119k area.
If delta shows increasing shorts, don’t short — wait higher.
But if people forget what just happened and start heavily longing again, it’s probably another short setup in this sucker’s rally.
Bitcoin BTC - Market AnalysisWhile my broader bias on Bitcoin (BTC) remains bearish, I hold a short-term bullish outlook leading into the New York (NY) session open. This perspective is based on several key technical observations:
I anticipate potential price manipulation during the NY session that may drive BTC toward the 0.618–0.786 Fibonacci retracement levels. This zone also coincides with a significant market structure shift (MSS) key level, making it a potential area of interest for short positions.
Notably, we have already seen strong rejection from the 0.5 equilibrium level within the current Fibonacci range, suggesting sustained selling pressure from market participants.
Furthermore, there appears to be limited liquidity buildup on the buy side, indicating a lack of engineered liquidity or compelling draw for a continued move higher compared to the liquidity we have on the sellside.
Given these factors, I plan to position myself for a potential short trade, capitalizing on any bullish manipulation that drives price into the aforementioned sell zone.
BTC mainly accumulates, remaining force decreasesBTC Technical Analysis (1D Chart)
Bitcoin continues to move inside a rising channel, where the upper trendline has repeatedly acted as strong resistance (around $125,000–126,000), and the lower boundary has held as key support near $108,000.
After the recent rejection at the upper boundary, price has pulled back sharply and is now approaching the support zone at $108,000–108,500, which aligns with:
The bottom trendline of the ascending channel
The 200-day EMA (white line)
A previous reaction zone marked by strong bullish reversals in the past
If the support holds, BTC may see a technical rebound toward the EMA89–EMA34 zone around $114,000–115,000, or even back to the channel resistance near $125,000.
However, if price breaks below $108,000, it would confirm a bearish breakout from the channel, potentially opening the way toward $100,000–102,000.
Key Levels to Watch
Resistance: $114,000 – $115,800 / $125,000 – $126,000
Support: $108,000 – $108,500 (critical zone)
Trend: Neutral to bullish inside channel; bearish breakdown if $108K fails
TradeCityPro | Bitcoin Daily Analysis #199👋 Welcome to TradeCity Pro!
Let's move on to the Bitcoin analysis—finally, the support zone that Bitcoin had has been broken. Let’s review what has happened in the market.
⏳ 1-Hour Timeframe
Yesterday, Bitcoin was in a consolidation range between 110,420 and 111,714.
✔️ Bearish signals, such as Dow Theory structure and high volume on bearish candles, were visible on the chart. Eventually, this led to a break of the consolidation from the bottom, and the support zone was lost.
🔍 After breaking this area, the price retraced and, with a consolidation below 107,790, confirmed the breakdown.
⭐ Currently, the price is at 104,483 and has reacted to it. The RSI oscillator has also reacted to its support area at 22.19 and has been holding near this support for several candles.
📉 If the price continues to drop, this 104,483 level serves as a suitable trigger for the next entry point. Breaking this level could push the price toward the next support zones.
🔔 However, if the price moves upward and fully fakes this drop, a consolidation above 111,714 would confirm a bullish reversal for Bitcoin, allowing us to open long positions with much higher momentum.
💡 I personally opened a short position at the break of 110,420 and am not taking profit yet because it’s a good entry point. In the future, if the market drops, it will provide strong support for subsequent positions.
💥 If the market moves upward and this short gets stopped, strong bullish momentum will enter, making the long positions we open in the next leg very attractive.
❌ Disclaimer ❌
Trading futures is highly risky and dangerous. If you're not an expert, these triggers may not be suitable for you. You should first learn risk and capital management. You can also use the educational content from this channel.
Finally, these triggers reflect my personal opinions on price action, and the market may move completely against this analysis. So, do your own research before opening any position.
BTC Pullback: Key Support at $99,800 – Next Move?#Bitcoin is currently experiencing a pullback, likely triggered by news, such as President Trump’s tariff announcement on China.
The price is hovering around $110,500, but it doesn’t look strong enough to hold at this level, so a move toward $99,800 is possible. The 0.5 Fibonacci retracement at $99,800 acts as a key demand zone. However, the RSI isn't oversold yet, which means there’s potential for further downside if this support breaks.
In my opinion, the best approach right now is to wait for some confirmation.
Stay tuned and follow for more updates, and if you're stuck in any coin, feel free to DM me I’ll do my best to help you out.
CRYPTOCAP:BTC BITSTAMP:BTCUSD BINANCE:BTCUSDT
Bitcoin Facing Channel Resistance: Another Drop Ahead?Hello guys!
BTC is currently moving within a descending channel, showing consistent lower highs and lower lows, confirming a short-term bearish structure. The price continues to respect this channel, and until a clear breakout occurs, the downward bias remains intact.
Key Observations:
Two bearish engulfing (Engulfed 1 & Engulfed 2) have marked strong rejections from the upper boundary, reinforcing seller dominance at higher levels.
After the second engulfing, the price rebounded slightly, forming a minor pullback within the channel.
The upper boundary around $122,200–$122,500 is acting as dynamic resistance, aligning with the trendline.
Short-Term Expectation:
BTC could potentially push once more toward the upper boundary of the channel (around $122,200), where sellers may re-enter.
If the resistance holds, a continuation toward the $118,200–$118,300 support zone is expected, which aligns with the lower boundary of the channel and previous reaction levels.
Levels to Watch:
Resistance: $122,200 – $122,500
Support: $118,200 – $118,300
Breakout confirmation: A clean close above $122,500 could invalidate the bearish setup and open the way for a short-term bullish correction.
Bias: Bearish below $122,500
BTCUSDT with Fib extensionsBTC is range bound between 105.1k support and 116.6k resistance, with a pivot at 1.272 -112.6k.
Rejections appeared in 1.414–1.618 (116.6k–122.2k) buyers defended around ~105k.Focus on weekly closes around 112.6k and 116.6k for direction.
Bull bias only after a weekly close > 116.6k invalidate if price falls back below 112.6k.
Until then, range trade: look for reactions near ~105k (buy side) and ~116.6k (sell side).... so...as long as 105k holds, the re-accumulation scenario is alive the real “flag” for expansion is a weekly close above 116.6k, aiming for 122k and then 133k. If 105k is lost decisively, expect a retest of 99k–95k.
BTCUSDT — Bullish Rebound Within Regression Channel (15m AnalysiBitcoin is showing a potential bullish rebound inside the linear regression channel after a sharp drop.
Price is currently testing the midline resistance area around $112,800, supported by a strong bounce from the lower boundary near $110,500.
The Stochastic Oscillator has crossed upward from the oversold zone, signaling short-term bullish momentum.
If the price breaks above the upper channel, next resistance could be seen near $114,000.
Failure to hold above $111,800 may invalidate the bullish setup and retest the lower boundary.
🔹 Tools used: Linear Regression (100), Stochastic (10,3,3)
🔹 Timeframe: 15m
🔹 Exchange: Binance
#BTCUSDT #Bitcoin #TechnicalAnalysis #TradingView #CryptoAnalysis #Scalping #DayTrading
Bitcoin wobbles after Friday's crashBitcoin has suffered from Friday's sell-off, though it tends to show signs of recovery during Monday’s session. After record liquidations worth of 20 billion dollars on the crypto markets, the sentiment for cryptos remains halted, but BTC tends to act as a “digital gold”, and a safe haven to some degree, that’s why it’s possible to observe some demand coming in to the BTC market later.
From a technical standpoint, BTCUSD has come to the dynamic resistance area (the distance between 20 and 50 moving averages), and if it would not show any signs of further recovery, it would probably pull back to the $110000 price area with a further consolidation.
Don't forget - this is just the idea, always do your own research and never forget to manage your risk!
Bitcoin September 2025 Outlook: a/b/c price fractal structureBTC enters September post-ATH with a seasonal headwind. Base case: a ~10% A-leg dip toward $108k, a B-bounce into ~$122k, then a C-flush near ~$94k—echoing April’s ABC rhythm. Once complete, the uptrend should re-assert into year-end. 📉🔁📈 #Bitcoin #Seasonality #Crypto
🟠 Bitcoin September Outlook: Seasonality vs. Structure
After a fresh ATH, September’s historical bias skews mildly red. Base case is a ~10% A-leg dip that develops into an A/B/C correction before trend continuation. Think controlled pullback → consolidation → next markup. 📉➡️🔁➡️📈
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🗓️ Seasonality Snapshot (2015–2024)
• Mean (10-yr): −2.55% · Median: −4.52%
• Red months: 6/10
• Worst September: 2019 (−13.88%)
• Best September: 2024 (+7.39%)
• Last 3 yrs avg: +2.8% (2024 +7.39%, 2023 +3.99%, 2022 −3.09%)
• Last 5 yrs avg (2020–2024): −1.3%
Read: September has tended to be weak, but the last two years printed green. Seasonality is a headwind—not a handbrake. 🌬️
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🧩 Structure Thesis (Fractal Analog)
You’re looking for a repeat of April 2025’s A/B/C rhythm—scaled up:
• April 2025 reference: A ≈ $92k → B ≈ $106k → C ≈ $80k
• Now (projected):
o A ≈ $108k (≈ 10% pullback from recent highs) 📉
o B ≈ $122k (relief rally / lower high) 🔁
o C ≈ $94k (final flush into demand, completing the correction) 🧱
Interpretation: A measured September fade aligns with the A-leg. A reflexive B-bounce can follow as funding resets and late longs get cleaned up, with a C-leg completing the pattern before the next expansion. 🚀
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📊 How Seasonality Supports the Call
• Typical drag: Median −4.5% and multiple red Septembers justify a down-bias.
• Volatility window: The historical 21-point spread (best +7.39% vs worst −13.88%) means a 10% dip sits well within normal bounds.
• Cycle context: With a new ATH just printed, a shallow corrective phase is constructive—not bearish regime change.
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🧭 Levels & Triggers
• Bias line: Momentum cools into $108k → watch for seller absorption and open interest reset.
• Relief cap: $122k acts as B-rally resistance; sustained closes above $122k would invalidate the ABC idea and argue for immediate continuation. ✅
• Completion zone: $94k (C) is the buy-the-dip completion area; clean breaks below raise risk of a deeper time correction rather than a swift V-reversal. ⚠️
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🧪 What to Monitor (Confirmation/Invalidation)
• Liquidity & OI: De-leveraging into A, controlled OI rebuild into B, washout into C.
• Spot-ETF flows / stablecoin issuance: Weakening into A, stabilizing by late month supports B→C rhythm.
• Funding/basis: Overheated → normalize during A; negative spikes near C often mark capitulation.
• Breadth (alts): Underperform into A/C; broad risk-on breadth usually returns post-C.
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📝 Base Case Path (Textbook)
September: drift to $108k (A) → bounce toward $122k (B) → final tag of ~$94k (C) → reset + markup into Q4.
(If price reclaims and holds above $122k early, treat that as trend continuation—not a correction.)
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🔒 Risk Notes
• Seasonality is a tendency, not a rule. Macro catalysts (CPI, policy, liquidity) can dominate calendar effects.
• This is market commentary, not financial advice. Manage risk and invalidation levels. 🛡️
Descriptions about the market! Read the caption!Given Mr. Trump's remarks and the unprecedented crash in cryptocurrencies, I must say this individual significantly harms markets, especially investors. Imposing a 100% tariff on Chinese goods essentially means "we want no trade with you," which is fundamentally unfeasible. The United States and China will undoubtedly negotiate. However, our main focus here is the financial market collapse. This decline isn’t merely about falling prices—it goes beyond that. The core issue is the loss of market trust and credibility. Once confidence is broken, it is difficult to restore and may take a long time.
In any case, I felt it was my duty to bring this up and remind you to stay composed. Never forget to use stop-losses in your trades and practice proper capital management.
If needed, you can always message me on this platform for advice.
NOTE: This post is This post is educational.
BITCOIN’S FINAL TRAP – THE SENTIMENT SWITCH IS COMING FASTIn my last BTC post I said a dump was likely based on data, and that thesis still stands. If anything, it’s even stronger now. .
On 13 August, CME made a high at 123,590.
That high was weak, no excess, flat TPO top, unfinished auction.
Binance topped at 124,474, Coinbase at 124,522.
CME opened with a gap down, leaving that poor high unrepaired with unfinished business and clean liquidity sitting above.
From 26 September, BTC started grinding up.
I expected a run of the 18 September high and a reversal around 118–119K, but price extended the move to the 1.618 extension. See my last analysis.
Structure was weak, spot CVD flat, futures CVD ripping, open interest climbing.
That shows perps were driving it, not real spot demand.
This week CME finally cleaned it up.
CME ripped through 125,025, taking out the August high at 123,590.
That level matched the old highs on Binance and Coinbase almost perfectly.
CME swept the old poor high left behind by spot and perps, completing the auction.
This is typical CME behavior, it hunts untested reference points during RTH and often reverses right after.
Flow data confirms the setup:
Spot CVD down means real buyers not following.
Stablecoin CVD pushing up means overleveraged longs chasing.
Coin-margined CVD rolling means profit taking or hedge flow.
Open interest flat at the top means trapped longs with no squeeze left.
The move looks like a leveraged markup driven by perps, cleaned up by CME liquidity, and now hanging on air.
CME repaired the August inefficiency, swept the prior spot high, and left another weak high with no excess, a textbook sign of distribution.
There’s still a chance we see one more SFP around 126K before momentum flips, but unless spot demand picks up aggressively, that should be the final liquidity grab.
My targets are 104K and 99K if 104K fails to hold, with potential for an even deeper drop beyond that level.
BTC HTFOn the higher timeframes, I believe we still have reasons to remain bullish. Monday will be an important day since the markets haven’t yet had the chance to react to Friday’s events. We made a fakeout of the anchored VWAP from the last bottom, the wick bounced off the annual VWAP, and we also have an SFP in play.
Bitcoin – Short-Term Weakness, Long-Term StrengthBitcoin has recently swept the all-time high, triggering a short-term reaction from liquidity resting above that level. This move often signals that the market has completed its buy-side run and is now seeking to rebalance inefficiencies created during the aggressive push upward. The current structure indicates that price is shifting momentum in the short term, preparing for a deeper retracement before resuming its bullish trajectory.
Imbalance and Structure Shift
Following the liquidity sweep, a clear 4-hour imbalance (IFVG) has formed, acting as the first sign of bearish pressure entering the market. This inefficiency shows that the prior move lacked sufficient counter-orders, meaning price may need to return there to restore balance. The bearish move was further confirmed as price inverted a smaller 4-hour FVG, signaling a potential continuation to the downside in the short term.
Bearish Scenario
If the market continues to respect the newly formed IFVG, we could see a sustained bearish retracement develop. Price may use this imbalance as a draw, seeking to fill deeper inefficiencies left behind during the prior expansion. This corrective phase is not necessarily a trend reversal but rather a short-term redistribution phase before buyers potentially step back in from lower levels.
Bullish Scenario
Once the 4-hour fair value gap below is filled, the market could begin forming a base for a new bullish leg. The liquidity collected from the downside move and the rebalancing of inefficiencies would give price enough fuel for a strong continuation higher. Traders should look for a clean market structure shift or displacement from that demand area as the signal of renewed bullish intent.
Expectations and Outlook
In summary, Bitcoin appears to be in a healthy retracement phase after sweeping liquidity at the highs. The 4-hour imbalance provides a clear short-term target for price to seek, and once filled, the bullish structure could resume. This setup favors patience, waiting for confirmation that the downside rebalancing is complete before anticipating another impulsive rally.
Conclusion
Overall, Bitcoin’s structure suggests a temporary bearish move to fill the 4-hour FVG, followed by a potential bullish continuation once that inefficiency is resolved. Watching how price reacts upon entering that zone will be key in determining whether the next expansion phase begins.
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Thanks for your support!
If you found this idea helpful or learned something new, drop a like 👍 and leave a comment, I’d love to hear your thoughts! 🚀