"Bitcoin Bearish Continuation Pattern: Short Entry on Retest"Chart Pattern
The price is moving within a descending channel (highlighted in blue and green), which typically signals continuation of the current downtrend.
A breakout to the downside of the channel seems to be forming (small breakout candle drawn outside the channel).
🔽 Trade Setup: Short Position
This is a short trade setup, meaning the trader expects the price to go down.
🔸 Entry Point
Entry Zone: Between 111,667.72 and 111,717.96 USD
This is above the current price, suggesting a pullback entry (waiting for a slight retracement before shorting).
🔹 Stop Loss
Stop Loss Zone: Between 113,074.59 and 113,077.51 USD
Placed above the channel and the entry point to protect against invalidation.
🟢 Target Point (Take Profit)
Target Zone: Between 105,989.97 and 106,015.09 USD
The expected price move is based on a measured move or projected breakdown from the channel.
🧮 Risk to Reward Ratio
The risk/reward box (red for risk, green for reward) shows a positive risk-reward ratio, likely around 1:2 or better, which is favorable in trading.
✅ Analysis Summary
Trend: Bearish (descending channel, lower highs and lower lows).
Setup: Short position on pullback into resistance zone.
Target: 106,000 area.
Stop: 113,000 area.
Current Price: Around 108,905.09 USD.
📌 Final Thoughts
The setup assumes the breakdown from the channel is valid.
A retest of the breakdown zone (entry point) is anticipated before continuation downward.
Be mindful of potential false breakouts or sudden bullish reversals.
