Market Overview:
Bitcoin (BTC/USD) has broken below a key consolidation zone after trading in a range between $90,000 - $108,000 for several weeks. The price is now attempting a retest of the previous support, which has turned into a resistance (supply zone) before a potential continuation to the downside.
Chart Pattern & Technical Setup:
📉 Break & Retest Structure: The price has broken below the previous range and is now testing the $87,000 - $91,000 resistance zone.
📉 Lower High Formation: BTC is expected to create a lower high before continuing its downward trend.
📉 Bearish Wave Projection: The chart suggests a zigzag movement, forming successive lower highs and lower lows, targeting $67,399 as the next support level.
Trade Setup:
Bias: Bearish
Entry: Sell limit at $87,000 - $91,000 (Supply Zone)
Stop Loss: Above $95,000 (Invalidation Level)
Take Profit: $67,399 (Next Key Support)
Confluences Supporting Bearish Bias:
✅ Supply Zone Rejection: The resistance area is likely to attract sellers.
✅ Market Structure Shift: A break below the previous range indicates a trend reversal.
✅ Lower High Confirmation: A rejection at resistance will confirm the bearish outlook.
Risk Management:
Risk-Reward Ratio (RRR): 1:3+
Position Sizing: Adjust based on risk tolerance.
Alternative Scenario:
A break and close above $95,000 would invalidate the bearish setup, signaling a potential bullish continuation.
📌 Disclaimer: This analysis is for educational purposes only. Always manage risk properly before entering a trade.
Bitcoin (BTC/USD) has broken below a key consolidation zone after trading in a range between $90,000 - $108,000 for several weeks. The price is now attempting a retest of the previous support, which has turned into a resistance (supply zone) before a potential continuation to the downside.
Chart Pattern & Technical Setup:
📉 Break & Retest Structure: The price has broken below the previous range and is now testing the $87,000 - $91,000 resistance zone.
📉 Lower High Formation: BTC is expected to create a lower high before continuing its downward trend.
📉 Bearish Wave Projection: The chart suggests a zigzag movement, forming successive lower highs and lower lows, targeting $67,399 as the next support level.
Trade Setup:
Bias: Bearish
Entry: Sell limit at $87,000 - $91,000 (Supply Zone)
Stop Loss: Above $95,000 (Invalidation Level)
Take Profit: $67,399 (Next Key Support)
Confluences Supporting Bearish Bias:
✅ Supply Zone Rejection: The resistance area is likely to attract sellers.
✅ Market Structure Shift: A break below the previous range indicates a trend reversal.
✅ Lower High Confirmation: A rejection at resistance will confirm the bearish outlook.
Risk Management:
Risk-Reward Ratio (RRR): 1:3+
Position Sizing: Adjust based on risk tolerance.
Alternative Scenario:
A break and close above $95,000 would invalidate the bearish setup, signaling a potential bullish continuation.
📌 Disclaimer: This analysis is for educational purposes only. Always manage risk properly before entering a trade.
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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.
Related publications
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.