The price of Bitcoin has been on a consistent downtrend since the last ATH at $69000 which has led many to believe that we are about to see a repeat of what happened in April after the $64942 ATH price Mark.
Bitcoin has since taken an over 30% decrease in price, a downtrend without any valid break of market structure to the upside.
After the last drop which saw $BTC go from $57,000 to the $41,000 price Mark and swiftly bouncing to the 46k region, where price has now been ranging in for practically all of December, between $46k to $51k precisely.
Now’s there’s two things that could be happening at this point, an accumulation phase looking for a break to the upside. Or, the more scary option, $BTC again retesting that $41k zone, to take out the Liquidity at that price zone.
The most likely scenario here, looking at this market from a purely SMC point of view, which I do believe plays in handy here, is a liquidity chase. There’s definitely a pool of long Positions in the current market price zone, which the market has to take out, before any upward price break.
After the Liquidity at the December low is taken out, I will have enough reason to believe that the market can then return to the upside.