Bitcoin can look strongest right before it turns. The market often pulls price higher to create confidence, only to reverse once the crowd is positioned the wrong way. That is exactly why the current daily setup matters, because the recent move did not behave like a clean bullish continuation – it behaved like a liquidity-driven trap followed by a clear shift in control.

Daily Structure and CISD

On the daily timeframe, Bitcoin first expanded higher and swept Buy-Side Liquidity, clearing out the upside pool resting above recent high. The key is that this was not followed by sustained bullish delivery. Instead, the market immediately shifted the flow and started delivering price to the downside, which is where the setup becomes relevant.

 

 

 

After taking the Buy-Side Liquidity, BTC closed back below the key daily support zone, and at the same time it also closed below the first candle that initiated the bullish price delivery. This is the decisive detail, because it represents a clear Change In State of Delivery (CISD). In other words, the market shifted from bullish continuation into bearish delivery, turning the liquidity sweep into a potential distribution-type move rather than a clean breakout.

 

From an execution standpoint, this creates a structured sell setup. The invalidation point is defined by the internal high that was created during the move that swept the Buy-Side Liquidity. That is why the Stop Loss is placed above the internal high of that sweep, because if price reclaims that high, the bearish delivery is invalidated and the CISD loses its strength. If the bearish delivery continues and the CISD holds, the natural objectives are the Sell-Side Liquidity levels, since those lows represent the most likely magnets once the market confirms downside continuation on the daily timeframe.