Bitcoin has just completed a clean sweep of the old all-time high, which served as a major liquidity grab. This move has cleared out buy-side liquidity at the very top, creating the perfect environment for a shift in momentum. Price action shows a clear rejection after the sweep, suggesting that the market may now be poised to reach for sell-side liquidity.
Inversion Structure and CISD
On the 4H timeframe, we have a well-defined inversion fair value gap forming immediately after the high was taken. This aligns with the CISD concept, as the liquidity sweep at the top acted as inducement before a sharp displacement to the downside. The CISD level has already been retested, confirming the shift in structure and reducing the likelihood of another deep revisit before the next leg down.
Bearish Pathway
From here, price could either continue to slide directly or first pull back into a nearby imbalance before continuing lower. Both scenarios favor the downside, as the order flow remains bearish after the displacement. A further push down is likely to aim for sell-side liquidity resting below the recent swing low.
Key Downside Objective
The primary target sits at the confluence of a marked liquidity pool and a lower fair value gap. This is a high-probability area for price to react, as it combines the sweep of the recent low with a fill of unmitigated inefficiency. Once that zone is reached, we can reassess for potential reversals or continuation patterns.
Expectation
The market has already shown its intent by taking the highest liquidity first, shifting structure, and respecting the CISD framework. Unless the upside imbalance is filled in a deeper retrace, the path of least resistance remains lower toward the highlighted fair value gap.
Conclusion
With liquidity above already cleared and the CISD retested, the focus now shifts to the liquidity resting below. The alignment between structure, inefficiency, and liquidity targets supports a bearish continuation into the marked zone before any meaningful bounce.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
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