$BTC Short Setup: Drifting into a Sell Zone
Bitcoin ($BTC) is currently exhibiting characteristics that suggest it's drifting into a critical sell zone, with a potential for a significant drop if key support levels fail to hold. This analysis outlines a short-term trade plan based on a fade setup on the 4-hour chart, supported by a bearish 1-day outlook.
Trade Plan: $BTC SHORT
Entry Zone: 66216.048 – 66539.352 (Midpoint approx. 66377.700)
Stop Loss (SL): 67347.612
Target 1 (TP1): 65407.788
Target 2 (TP2): 65084.483
Target 3 (TP3): 64437.875
Why This Setup?
The confluence of a 4-hour fade setup and a bearish daily trend provides the edge for this short opportunity. The entry zone is precisely defined, allowing for disciplined execution. With a 1-hour Average True Range (ATR) of 646.608 (approximately 1.0%), the risk is quantifiable and manageable. Furthermore, the 15-minute Relative Strength Index (RSI) at 51 suggests that there is ample room for downside momentum to develop without being immediately oversold.
Key Levels & Risk Management
It is crucial to keep the 70494.732 level intact. This serves as our invalidation point; acceptance above this price would break the bearish thesis.
Initial Target (TP1): 65407.788 (~1.5% downside) offers a Risk/Reward (RR) of approximately 0.24.
Extended Target (TP3): If selling pressure persists, the move could extend to 64437.875 (~2.9% downside), improving the RR to approximately 0.47.
The Debate
The primary question remains whether the initial downside to 65407.788 will satisfy the current sell flow, or if the market will push further towards 64437.875. Traders should monitor price action carefully around TP1.
Analysis by @SaleeM_MeYo
#Bitcoin #CryptoTrading #ShortSeller
