A few days ago, an analysis outlined one possible scenario: a liquidity sweep below key lows. Historically, Bitcoin has shown a tendency to revisit these levels over time, as they often act as efficient zones for order matching due to the concentration of Stop Loss orders near the wicks of significant candles.

With liquidity now removed at the $116,000 level, the key question becomes: Will Bitcoin witness further growth in the short-term?

Bitcoin technical analysis

BTCUSD - 4 Hour Time Frame

As highlighted at the start of the analysis, Bitcoin's price action slowed considerably after its most recent impulsive rally, during which it briefly surpassed the $120,000 mark. This loss of momentum led to the formation of both Buy-Side and Sell-Side Liquidity, which historically signals a potential preparation for a sharp move in either direction.

On the higher timeframe, and based on past Bitcoin behavior, the probability favored a downside move toward Sell-Side Liquidity, aligning with a key weekly support area. This scenario materialized, and the price subsequently reversed upward, initiating a new bullish phase.

The bounce resulted in a clean close above the prior resistance zone, which had served as the origin of the bearish liquidity sweep. This development could be interpreted as a confirmed entry setup – a liquidity sweep followed by a close above key resistance.

Bitcoin price target

For market participants evaluating re-entry or position scaling, the current price structure may present a potential opportunity, contingent on disciplined risk management. A Stop Loss could be positioned just below the internal low, as indicated on the accompanying chart.

On the upside, potential Take Profit zones may include the previous all-time high (ATH) and the psychological level of $130,000, offering reference points for partial or complete profit realization.

It remains important to monitor price interaction with the upper resistance zone (highlighted in orange on the chart) as well as the behavior around the most recent blue support zone. The latter represents a key component in managing downside risk.

Should Bitcoin close below the blue support zone on the 4-hour timeframe, a conservative approach could involve reducing most of the position ahead of a potential Stop Loss trigger. In a favorable continuation scenario, the price would ideally maintain support above this key zone.