This analysis is based on the 
BTCUSD 1-hour chart, which clearly suggests a short-term bearish bias after the price failed to sustain highs near $116,000. The market structure has shifted decisively, marked by a succession of lower highs and lower lows (LHLH), indicating that the significant prior upswing is now undergoing a deep correction or reversal. The price action at the top demonstrates a potential "three-tap" structure, a common sign of exhaustion and a precursor to a major trend change.
Following the breakdown, the area between $111,600 and $112,000 has become a critical resistance zone (supply zone). The current trade setup is positioned as a short entry within this resistance band, specifically around $111,423.55 - $111,600.00, aiming to capture the continuation of the bearish momentum as the market retests the previously broken support.
The stop loss is strategically placed just above the resistance at $112,717.86 to manage risk, while the ambitious take profit target is set much lower at $107,157.17. This target aligns with a major liquidity and demand zone (the green box) that was instrumental in launching the previous rally, offering a highly favorable Risk/Reward ratio.
BTCUSD 1-hour chart, which clearly suggests a short-term bearish bias after the price failed to sustain highs near $116,000. The market structure has shifted decisively, marked by a succession of lower highs and lower lows (LHLH), indicating that the significant prior upswing is now undergoing a deep correction or reversal. The price action at the top demonstrates a potential "three-tap" structure, a common sign of exhaustion and a precursor to a major trend change. Following the breakdown, the area between $111,600 and $112,000 has become a critical resistance zone (supply zone). The current trade setup is positioned as a short entry within this resistance band, specifically around $111,423.55 - $111,600.00, aiming to capture the continuation of the bearish momentum as the market retests the previously broken support.
The stop loss is strategically placed just above the resistance at $112,717.86 to manage risk, while the ambitious take profit target is set much lower at $107,157.17. This target aligns with a major liquidity and demand zone (the green box) that was instrumental in launching the previous rally, offering a highly favorable Risk/Reward ratio.
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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.