Bitcoin Price Prediction: BTC Consolidates After 20% Bounce

Bitcoin is currently consolidating following a roughly 20% relief bounce after last week’s sharp correction. This type of sideways price action between key daily levels is typical after aggressive downside moves. As a result, liquidity zones—not directional bias—are shaping short-term trade setups as the market digests recent volatility.

Key Market Structure and Liquidity Overview

Current Market Environment

The current Bitcoin setup is defined by range-bound behavior within a broader bearish trend. Multiple liquidity pools remain both above and below the current price, creating a reactive market environment where price is likely to move toward untested zones before establishing clearer direction.

Because the higher-timeframe trend is still bearish, entering trades without confirmation carries elevated risk. Both bullish and bearish scenarios remain valid, depending on how price interacts with key liquidity levels.

Bullish Scenario: Support and Upside Liquidity

From a bullish perspective, the $65,322 level stands out as a major liquidity and support zone. Traders are watching for a potential revisit of this area before considering long positions.

However, long setups only become attractive if high-probability reversal signals appear after a liquidity sweep. If confirmed, the primary upside liquidity target for this scenario is located near $76,971, where resting liquidity could attract price.

Bearish Scenario: Wick Sweep and Downside Continuation

On the bearish side, Bitcoin recently printed a large wick near $72,271. This level now acts as a strong liquidity magnet.

If price sweeps above this wick and then forms a bearish market structure break on lower timeframes such as M15 or M30, short positions targeting the $65,322 liquidity zone become valid. Additional downside liquidity pools left behind during the recent sell-off also remain viable targets once bearish confirmation is established.

Why These Levels Matter

This market structure highlights a classic post-correction environment where liquidity, not sentiment, controls price movement. The key risk for traders is assuming continuation without confirmation, particularly given the bearish higher-timeframe context.

As noted in the analysis, the main risk in this environment is entering positions without confirmation while the broader trend remains bearish.

Higher-Timeframe Outlook

From a macro perspective, Bitcoin does not regain a bullish bias unless price shows acceptance above the $79,360 resistance level. Only a sustained move above this zone would signal a meaningful higher-timeframe trend shift.

Until that occurs, Bitcoin price action is expected to remain range-bound, liquidity-driven, and highly reactive as traders monitor how price responds to these critical levels.

Source: Analysis based on a Twitter post by Lennaert Snyder.

en_USEnglish