This BTC/USD 1H setup is a Smart Money Concept (SMC) long trade, built on liquidity, market structure shift, and mitigation. Let’s break it down:
Setup Breakdown
1. Market Structure
Previous bearish leg created a deep selloff.
Price swept a low, broke above a structure (BoS = Break of Structure) → indicating possible reversal intent.
2. Liquidity Sweep
See the “x” mark near the top and the large wick that tapped above the previous high?
That was a buy-side liquidity grab.
Price then reversed aggressively, hinting it was a stop hunt, not genuine buying.
3. Break of Structure (BoS)
Confirmed bullish intent.
The BoS you marked shows that the last lower high was broken, turning structure bullish.
4. Entry
Price returned into a demand zone (pink box) after the BoS.
The area aligns with:
Demand zone (bullish OB)
Fair Value Gap (FVG) just above it.
The ascending triangle pattern in the recent candles added confluence of bullish pressure before breakout.
5. FVG & Target Zone
You're targeting the FVG + Supply Zone marked in light blue around 119,900–120,400.
It's aligned with:
Liquidity cluster
Previous supply structure
That’s a logical area where price might slow down or reverse.
Trade Plan
Entry: After price retests demand and shows bullish signs.
Stop Loss: Below the demand zone and recent swing low (~116,585).
Take Profit: Top of the FVG/supply zone (~120,400–121,250).
Risk-Reward: Solid R:R ~1:3 or higher.
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