BTC/USD -SMC IDEABTC/USD pair using the 1-hour timeframe, guided by Smart Money Concepts (SMC).
The market structure indicated a clear bearish reversal, as seen through a Change of Character (CHoCH) and multiple Breaks of Structure (BOS), confirming the formation of lower highs and lower lows. A notable supply zone was marked between 103,900 and 104,300, aligned with a bearish order block and reinforced by a Fibonacci retracement at the 0.786 level. The price appeared to be retracing into this premium zone, suggesting a potential reversal upon liquidity sweep, especially with internal liquidity ($$$) formed just below the protected high. This protected high, located at 104,417, served as the designated stop loss level in the event of bullish invalidation.
The trade setup was structured with a pending short entry around 104,200 within the identified supply zone. The first take profit target was set at 102,550, positioned at a minor demand and liquidity zone, while the second take profit target was more ambitious at 100,756, corresponding to a stronger demand area and inducement level. The trade offered a favorable risk-to-reward ratio, estimated at 1.8R for TP1 and up to 4.5R for TP2. Before execution, confirmation such as a bearish engulfing candle or lower time frame structure break was required to validate entry. Risk management protocols emphasized a maximum risk exposure of 1–2% of trading capital, with plans to move the stop loss to breakeven once price dropped below the 103,000 mark. The trade was based on institutional price behavior, clear liquidity inducement, and technical alignment, making it a high-probability short setup.
