- Bitcoin reacted at supply after sweeping previous highs — just as expected
- Price is now building above a trendline with five touches, likely full of liquidity
- If BTC wants to drop, it may first hunt the liquidity sitting above this trendline
In our last Bitcoin article, we discussed a possible reaction at the supply zone — but only after BTC had swept the liquidity from that most recent high. Well, guess what? That’s exactly what it did.
The price hit the supply, reacted cleanly, and dropped right down into the liquidity sitting below.
It played out like a textbook move.
Now things are getting interesting again. If you zoom out just a bit, you’ll spot a newly formed trendline — and not just any trendline. I’m talking about one with five clear touches on the upper side.
That’s not just structure, that’s a magnet for liquidity. Trendlines like these, especially when obvious to the public eye, tend to become stop-loss playgrounds.
You know the drill — people pile on long positions with tight stops just beneath, thinking the trendline will hold. And often, that’s precisely when price comes hunting.
So what now?
From my view, if Bitcoin wants to make a proper move down, it first needs to clear some of that liquidity stacked just above this trendline.
And when I say “clear,” I mean wick through it, trap a few overeager breakout traders, and then potentially reverse. It’s the kind of move that makes the market look like it’s breaking out — only to rug it shortly after.
Of course, if it decides to go full degen mode and defy logic (not the first time), it could keep climbing. But that would mean either price has more room to run or that there’s more liquidity to be collected above — potentially targeting the next supply zone.
At the end of the day, though, we don’t deal in certainties. Not in this game. What we do is map out possible scenarios, stack probabilities, and stay alert when one of those plays begins unfolding.
So — for now — Bitcoin looks like it’s teasing that trendline liquidity. If it takes it out with a bit of force and a clean setup follows, we might get a chance to reassess for a deeper move down.
If not, and we start holding above the structure with strength, then maybe the move wasn’t about a fakeout at all.
Always stay sharp. Always manage your risk. The market doesn’t owe us anything — and it certainly doesn’t like being predictable.
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