Bitcoin Analysis (SMC)
Welcome to the BTC price-action tracking hub. Find here our weekly updates decoding short-term institutional manipulation (H4/D1).
Sell-Side Liquidity purged: the Inducement is validated
This morning, Bitcoin violently broke below the Inducement level we had drawn during the Asian session. Concretely, the liquidity pool sitting below yesterday's lows was swept (Sell-Side Liquidity Purge).
The price-delivery algorithm (IPDA) printed a brutal bullish reaction inside the H1 Order Block that had remained unmitigated for 3 days. What does that tell us? That Market Makers accumulated enough short-side counter-flow to initiate the reversal toward the next remaining higher Fair Value Gaps (FVGs).
Strategy: as long as Price Action does not close a 1-hour candle below this same Order Block, the short-term bias becomes structurally bullish again. Watch nonetheless for a potential resistance in the FVG candle around $71,200.
ATR compression: prelude to expansion
On the W1 (weekly) chart, we observe extreme ATR compression. Statistically, that is the precursor to a major directional move. Given the visible accumulation inside a Weekly FVG, the ongoing retracement could lose steam mid-week, trapping breakout traders.