BTC/USD - Short Bias After Price Discovery
Market Context:
Bitcoin has entered price discovery mode but is now showing signs of a potential top formation near the $98,297 - $99,573 resistance zone. This area aligns with psychological levels where sellers often take control. Post-discovery phases frequently exhibit corrections or consolidation before continuation.
Indicators and Price Structure:
The price has created a potential lower high after failing to breach the red resistance zone.
The Fair Value Gap (FVG) suggests inefficiency in the recent bullish push, which may act as a magnet for price to retrace.
Bearish divergence could emerge as momentum slows near resistance.
Short Setup:
Look for confirmation of a break below $97,013, which would indicate a loss of bullish momentum.
A bearish break below this level could trigger a move toward filling inefficiencies and retesting previous support zones.
Key Levels to Watch:
Resistance: $98,297 - $99,573
First support target: $93,000
Major downside target: $86,125, representing a potential retest of a significant demand zone.
Entry Plan:
Entry trigger: Short on confirmation of price closing below $97,013 on significant volume or a bearish candlestick pattern (e.g., engulfing).
Stop Loss: Above the local swing high or $99,573 to protect against invalidation.
Take-Profit Targets:
Partial at $93,000 (local support).
Full at $86,125 for an extended correction post-price discovery.
Risk Management:
The structure suggests post-discovery corrections could retrace deeper before finding new buyers. Keep risk tightly managed in case bullish sentiment reignites at support levels.
Market Context:
Bitcoin has entered price discovery mode but is now showing signs of a potential top formation near the $98,297 - $99,573 resistance zone. This area aligns with psychological levels where sellers often take control. Post-discovery phases frequently exhibit corrections or consolidation before continuation.
Indicators and Price Structure:
The price has created a potential lower high after failing to breach the red resistance zone.
The Fair Value Gap (FVG) suggests inefficiency in the recent bullish push, which may act as a magnet for price to retrace.
Bearish divergence could emerge as momentum slows near resistance.
Short Setup:
Look for confirmation of a break below $97,013, which would indicate a loss of bullish momentum.
A bearish break below this level could trigger a move toward filling inefficiencies and retesting previous support zones.
Key Levels to Watch:
Resistance: $98,297 - $99,573
First support target: $93,000
Major downside target: $86,125, representing a potential retest of a significant demand zone.
Entry Plan:
Entry trigger: Short on confirmation of price closing below $97,013 on significant volume or a bearish candlestick pattern (e.g., engulfing).
Stop Loss: Above the local swing high or $99,573 to protect against invalidation.
Take-Profit Targets:
Partial at $93,000 (local support).
Full at $86,125 for an extended correction post-price discovery.
Risk Management:
The structure suggests post-discovery corrections could retrace deeper before finding new buyers. Keep risk tightly managed in case bullish sentiment reignites at support levels.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.