BTCUSD chart is showing signs of a potential bearish continuation setup, mainly due to the formation of a pennant pattern after a strong impulsive downside move. A pennant generally represents a temporary consolidation before the market continues in the direction of the previous trend — in this case, bearish momentum.One of the most important aspects visible on this chart is the presence of resting liquidity below the current price.
If the pennant breaks downward:
- BTC could initiate a fast impulsive move lower.
- The projected path suggests price may sweep the liquidity resting below intermediate
- The market could then continue falling toward the marked reversal area, where stronger
buying interest may finally appear.
- Bearish trigger zone: Breakdown below the pennant support and internal structure.
- Liquidity targets: The lows beneath the current consolidation.
- Major reversal area: Around the highlighted bottom demand zone near the lower boundary of the chart.
Overall structure currently favors the bears. The pennant formation, combined with downside liquidity attraction and rejection from the IFC-FVG area, suggests that BTCUSD may be preparing for another significant leg down. Until buyers reclaim higher structure levels convincingly, the probability of a liquidity sweep toward the reversal area remains elevated.
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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.