BTCUSD – Descending Channel & Liquidity Sweep Setup

[tradelikepro]

Bitcoin is currently trading within a well-defined descending channel, respecting both the upper and lower trend boundaries. The higher timeframe structure shows a bearish continuation phase, characterized by multiple BOS (Breaks of Structure) to the downside, confirming sustained sell-side control.

Within the channel, price has repeatedly formed Equal Highs / Equal Lows, indicating liquidity buildup on both sides of the range. These equal levels suggest that the market is engineered to sweep liquidity before committing to a larger directional move.

The earlier CHoCH (Change of Character) marked the transition from bullish to bearish market structure, after which price respected the bearish order flow and continued lower. Recent price action near the channel lows shows compression and range-bound behavior, hinting at potential sell-side liquidity exhaustion.

A sweep of the equal lows near the lower boundary of the channel could act as a catalyst for a bullish reversal or strong mean reversion move. If price reclaims the channel and breaks structure to the upside, a trend reversal scenario becomes likely.

In the bullish case, upside targets align with prior liquidity pools and inefficiencies, with a macro objective toward the 100K–120K region, assuming confirmation via structure shift and acceptance above key resistance.

Bias:
• Short-term: Bearish / consolidation
• Mid–Long term: Bullish upon liquidity sweep + bullish BOS confirmation

Key Concepts:
SMC, BOS, CHoCH, Equal Highs/Lows, Liquidity Sweep, Descending Channel

[madtrader]

hopefully analyze is true