Bitcoin: Pullback Expected Into Prior Consolidation Zone

After a strong markup phase, Bitcoin has now formed a buying climax near the $113K level. Price action shows signs of distribution, with stacked imbalances above acting as a liquidity magnet. I expect price to first sweep this overhead liquidity, trapping breakout buyers and creating the conditions for a reversal.

Once the sweep is complete, confirmation will come if price fails back below the buying climax zone. This would indicate true seller pressure and a shift in market structure. At that point, I will be watching for a retest of the prior POC (Point of Control) to establish short positions.

Trade Plan:

Entry trigger: Sweep of buying climax → bearish rejection → retest of supply / POC.

Stop loss: Above the sweep high (invalidates distribution scenario).

Targets: Previous consolidation levels and liquidity pools below ($111K–$110K zones).

This setup aligns Wyckoff distribution structure with orderflow and liquidity logic. As long as the sweep fails and sellers regain control, I expect a pullback into the prior consolidation zone.

⚠️ Invalidation: Sustained acceptance above the buying climax would cancel the short bias.

Ordre annulé

The analysis was correct, as price did break down from the Buying Climax and reached the projected take profit zone. However, my short entry was never triggered, since price never reached the liquidity zone above before dumping on news. While this means I didn’t catch the move, it reinforces the importance of waiting for confirmed setups instead of forcing trades. The trade idea was valid, but without my entry signal, I stayed out.

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