BTCUSD is showing the formation of a bearish pennant, which is generally considered a continuation pattern favoring downside momentum. After the breakout, the market appears to be giving a fake upside move to trap buyers before the actual bearish move begins.The price is trading inside the central area of the reversal zone, creating two possible scenarios.
1. The First possibility is that since price is already inside the central reversal region, the market may reject directly from current levels and begin the downside move without another major push upward.
2. The Second possibility is that BTCUSD pushes higher into the marked reversal area to complete the liquidity grab and trap late buyers before initiating a strong bearish decline.
Liquidity is still resting below the current market structure, which increases the probability of a sharp bearish expansion toward the lower reversal area.
As long as the pennant structure remains valid, The overall expectation remains bearish with downside liquidity acting as the primary target.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.