BTCUSDT Perpetual Contract
Short
Updated

BTC - Inversion Play at Resistance With IFVG Breakdown Potential

1 578
Price has tapped into a previously established resistance zone and is now showing signs of exhaustion. A reactive short setup is in play, contingent on further bearish confirmation.

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1. Resistance Zone — Key Supply Area

The marked red zone above highlights:

- Repeated Rejections: Price has failed multiple times to break and hold above this level.
- Order Block & Liquidity: Likely an area where institutional selling interest remains.

This zone offers a prime location for short setups, especially if price fails to hold above it and begins to roll over.

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2. IFVG Inversion — Breaker-Type Setup

We are watching for:

- Inversion of a Bullish IFVG: A common signal of shifting order flow.
- Breaker Behavior: A previously supportive zone now acting as resistance — a hallmark of smart money reversals.

This structure suggests an intent to trap late longs and transition into lower pricing.

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3. Internal Liquidity Sweep — Fuel for the Drop

The local high served to:

- Clear Short-Term Liquidity: Wick just above resistance suggests engineered breakout bait.
- Trigger Buyer Commitment: Which could now get trapped if momentum fails.

This liquidity event sets up the conditions for a more sustained push downward.

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4. Downside Targeting the Discount Zone

Price is projected to revisit the blue discount zone:

- 0.618–0.65 Retracement Levels: Classic Fibonacci discount area often targeted after a premium rejection.
- Reaccumulation Potential: Watch for signs of buyer interest returning here.

This forms the logical destination for price following a confirmed rejection.

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5. Summary:

- Price Rejecting Resistance & IFVG Inversion Signals Reversal Bias
- Liquidity Sweep Confirms Trap Setup
- Discount Zone Below Offers High-Probability Reaction Area

A strong short scenario may unfold if bearish order flow confirms beneath the resistance region.
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