Bitcoin may be nearing the end of a downside liquidity sweep, according to trader Killa, who reviewed the asset’s weekly structure on Oct. 18. He said BTC had previously dropped from $87,000 into the $80,000 area before rebounding 50%, and that after this week’s open, Monday’s push higher failed to hold before price moved lower and swept the prior week’s low near $80,000.
In Killa’s view, the market has mainly been "hunting" longs so far, which could leave room for a shift toward squeezing shorts next week. For the near term, he said traders should watch whether Bitcoin revisits this week’s low at $79,800. If that level is swept again, he sees it as a potential long setup.
He also outlined a clear decision zone at $83,600. If BTC cannot break through that area, the market would likely remain stuck in a capitulation phase within a range. If price reclaims it, the move could open the way for an upside breakout. Killa added that even in the most bearish outcome for bulls, BTC may only deviate lower into the $76,000-$78,000 range, and he does not expect an extreme sweep to $74,000.
According to BlockBeats, trader Killa said on Oct. 18 that Bitcoin’s weekly chart may have already completed a downside sweep after recent price action around the $80,000 area.
In his review, Killa said BTC had fallen from $87,000 into the $80,000 zone last week and then rebounded 50%. After the new weekly candle opened, Bitcoin pushed higher on Monday but failed to sustain the move, before dropping and sweeping the previous week’s low near $80,000.
Focus shifts from long liquidation to a possible short squeeze
Killa said the side being "hunted" in the market right now is mainly longs. On that basis, he believes next week has a strong chance of shifting toward hunting shorts instead.
For the short term, he said traders should closely watch whether Bitcoin sweeps this week’s low at $79,800 again. If that happens, he would look for a long entry.
$83,600 is the key level if BTC stops making new lows
Killa laid out a simple framework for the next move. If Bitcoin does not sweep lower again, the main area to watch is $83,600.
If price fails to break that zone, the market would remain in a capitulation phase inside a range. If BTC can reclaim and flip that area, the move could develop into an upside breakout.
He expects the next weekly open to push higher and force late short sellers who entered recently to cover their positions.
Worst-case scenario for bulls still points above $74,000
Killa said the worst setup for bullish traders would be a lower deviation into the $76,000 to $78,000 range.
At the same time, he said he does not think an extreme sweep to $74,000 will happen.
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