BTC/USDT Bearish Setup – Sell Limit & Target ZonesMarket Overview:
Bitcoin (BTC/USDT) is currently trading within a well-defined descending channel after an extended bullish rally. The price action shows signs of a lower high formation, indicating a possible continuation of the downtrend. This setup aligns with a sell limit strategy, anticipating a rejection from a key resistance level before a potential decline toward lower support areas.
Technical Breakdown:
📉 Descending Channel Formation:
BTC has been trading in a downward-sloping parallel channel, with multiple touches on both the upper and lower boundaries.
The price is currently attempting to retest the upper trendline of the channel, which could act as strong resistance.
💰 Sell Limit Placement at Resistance ($88,907):
The chart highlights a key resistance level at $88,907, which aligns with:
The upper boundary of the descending channel.
A previous supply zone, where sellers were active.
A potential area of rejection, leading to further downside.
📌 Fair Value Gap (FVG) & Handle Trendline:
The D1 Fair Value Gap (FVG), marked on the chart, suggests an imbalance in price that may get filled before any reversal.
Additionally, BTC is hovering around the upper trendline of the handle formation, making this a crucial confluence zone for decision-making.
📊 Bearish Target Levels:
Primary downside target: $74,431 – A strong historical support and previous reaction zone.
Secondary target: $73,829 – This level coincides with the mid-level of the fair value gap.
Final bearish target: $68,972 – The lowest target inside the demand zone, potentially acting as a key reversal point.
🚨 Bearish Confirmation:
If BTC gets rejected from the sell limit zone ($88,907) and breaks below support structures, it could trigger a further decline.
Break of trendline support + volume confirmation will strengthen the bearish bias.
Trading Plan:
✅ Sell Limit Entry: $88,907
🎯 Target 1: $74,431
🎯 Target 2: $73,829
🎯 Target 3: $68,972
❌ Invalidation: A strong breakout above $88,907 with volume could invalidate this setup.