Coach

BTC at a Critical Inflection Zone, Fakeout or Breakdown?

Bitcoin is currently trading at a key structural area where directional conviction is building.

Market structure continues to show lower highs capped by a well-defined descending trendline, while higher lows indicate growing demand, resulting in tight compression beneath resistance.

This zone often precedes a decisive expansion, with two primary scenarios in play:

Scenario 1 – Liquidity Sweep and Continuation

Price sweeps below the local support, removes weak liquidity, and quickly reclaims the level.

A strong reaction from this area would favor continuation toward the upper range and a potential trendline break.

Scenario 2 – Acceptance and Breakdown

Failure to defend the rising support, followed by acceptance below structure, would invalidate the bullish continuation narrative and open the door for deeper downside.

At this stage, patience is key. Confirmation through reclaim or acceptance will define the next directional move.

Question

Do you expect a classic liquidity fakeout before expansion, or a clean breakdown from this compression zone?

Share your perspective