Bitcoin showed signs of exhaustion after a strong short-term rally within a clean upward channel on the 1H chart.
Price action had been respecting the trend structure until a key deviation occurred near 108,500, where we saw an internal liquidity sweep that hinted at potential distribution.
Fake-Out Confirmation and Shift in Momentum:
After taking out local highs around 108.5K, price failed to continue higher and instead reversed sharply, confirming the sweep as a classic fake-out.
This kind of internal liquidity grab is typically used to trap breakout buyers before reversing and targeting previous lows.
Break of Structure and Channel Retest:
The rising channel was broken convincingly, and price has now retested the underside of the channel, aligning with the 50% equilibrium of the entire high-to-low range.
This reinforces the bearish bias and suggests the market has likely shifted from accumulation to distribution.
Downside Targets and Key Levels:
Immediate support sits around 104.6K, which served as a consolidation base during the earlier run-up. If this level fails to hold, the next key target would be a sweep of the previous significant low at 102.8K. This area is marked as a point of interest and could offer a reaction or reversal.
Price Expectations and Trade Outlook:
As long as price remains below the broken channel and under 107K, the bearish scenario remains in play. I’m watching for bearish continuation into 104.6K first, and a potential full sweep toward 102.8K if that support fails.
Conclusion:
The internal sweep followed by impulsive rejection, combined with a clear channel breakdown and retest, shifts the bias to bearish.
A move into the 104.6K region seems probable, with a lower liquidity target at 102.8K in sight if downside pressure accelerates.
Trade at your own Risk 👍
Best Regards, Trade Cryptocurrency
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