BTC - Bearish Confluence and 94K in Sight?Market Context & Technical Analysis
The current price action is showing strong bearish confluence across multiple timeframes. On both the 1H and 4H charts, a Fair Value Gap (FVG) at 96,250 is acting as a strong resistance level. Each time price taps into this area, it rejects, showing that sellers are in control and limiting any potential bullish movement.
Additionally, price is trading below the Point of Control (POC), which is a high-volume area acting as a major resistance. This is a key sign that buyers are struggling to push the price higher, while sellers are defending their positions aggressively. As long as price remains below this level, the probability of further downside increases.
Liquidity & Key Levels to Watch
Another important factor to consider is liquidity. There is a potential liquidity sweep of the 94K low (marked by the black line), which could serve as a magnet for price. Many traders likely have stop-loss orders or pending buy orders around this level. A sweep of this liquidity could trigger a bounce, but until that happens, bearish momentum remains dominant.
A key observation is that price continues to respect the FVG zones, both on the lower and higher timeframes. This suggests that institutions or larger market participants are efficiently using these gaps to place their sell orders, making it difficult for bulls to regain control.
Potential Trading Scenario
Bearish Bias Until 94K Is Taken: As long as price continues to trade under the POC and the respected FVG at 96,250, the market structure remains bearish.
Liquidity Grab at 94K: If price sweeps the 94K low, we could see a shift in momentum, potentially leading to a bullish reversal. However, without a clear reaction from buyers, the downward trend could continue.
Invalidation Level: A strong reclaim of the 96,250 level and sustained trading above it would shift the bias back to neutral or bullish.
⚠️ Key Levels to Watch:
🔹 Fair Value Gap (FVG) Resistance: 96,250
🔹 Point of Control (POC) – Major Resistance
🔹 Potential Liquidity Sweep Target: 94,000
At the moment, the technicals are aligning for more downside movement, but liquidity sweeps can be unpredictable. Monitoring price action around 94K will be crucial for identifying the next major move.
🚨 Stay cautious and manage risk accordingly! 🚨