Bitcoin is currently trading under clear higher timeframe pressure after a strong reaction from a premium zone. Price tapped into a confluence area of weekly and monthly Fair Value Gaps and showed immediate rejection, confirming that sellers are active at these levels. This reaction shifts the broader outlook from neutral to bearish for the coming weeks, as price failed to accept above higher timeframe imbalance.
Higher Timeframe Context and FVG Rejection
The most important development is the clean rejection inside the overlapping weekly and monthly FVG. This zone acted as a high probability area for distribution, and the response validates it as a strong supply region. The rejection was decisive, with displacement to the downside, signaling that higher timeframe participants are likely defending this area and looking for lower prices.
Bearish CISD Formation
Following the rejection, price formed a bearish CISD, confirming that the move was not just a reaction but a structural shift. The CISD came after the liquidity interaction, aligning well with proper ICT sequencing. This adds confluence to the bearish case and suggests that the market is now in a sell side delivery phase rather than a corrective pullback.
Downside Targets and Liquidity Objectives
With structure now bearish, the primary expectation is continuation toward Target 1, which aligns with a key liquidity area below current price. If price accepts below this level, continuation toward Target 2 becomes likely, targeting deeper weekly liquidity and a strong demand zone that previously supported price. These areas are logical objectives for the current bearish leg.
Invalidation and Alternative Scenario
The bearish structure remains valid as long as price stays below the rejected weekly and monthly FVG zone. Any sustained acceptance back into and above that area would weaken the bearish narrative and signal potential range behavior instead. Until that happens, downside continuation remains the higher probability scenario.
Conclusion
Bitcoin rejected a major weekly and monthly FVG, formed a bearish CISD, and is now structurally aligned for further downside. The focus remains on Target 1 first, with Target 2 as a continuation objective if sell side momentum persists. Overall structure supports a bearish outlook for the upcoming weeks.
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