Potential BTCUSD Reversal and Downtrend from ResistanceAnalysis Overview:
In this analysis, we observe a potential reversal pattern for BTCUSD based on the 4-hour chart. The price is approaching a significant resistance zone, indicating a possible turning point.
Key Points:
Swing High & Lower High: BTCUSD has formed a recent swing high followed by a lower high, suggesting weakening bullish momentum.
Resistance Zone: The price is nearing a critical resistance area marked by the PREVIOUS monthly ATH and the 4-hour FVG.
Bearish Order Block: The red zone indicates a bearish order block, which could act as a strong resistance.
Possible Scenarios:
Rejection and Downtrend: If BTCUSD gets rejected at the resistance zone, we could see a decline towards the swing low and potentially further down.
Break and Continuation: Conversely, a break above the resistance could invalidate the bearish outlook and suggest further bullish movement.
Trade Idea:
Short Entry: Around 70,000 USDT.
Target: Initial target at 55,000 USDT.
Stop Loss: Above the resistance at 72,000 USDT.
Conclusion:
This analysis highlights a potential short trade opportunity based on the identified resistance zone and bearish order block. The targets and stop loss levels are clearly stated to manage risk effectively. Please ensure to conduct your own research and consider the market conditions before taking any trade.
