Market Overview:
The BCH/USDT pair is currently encountering a significant supply zone following a recent "Squeeze" (price compression), which suggests a potential exhaustion of the upward momentum. Although the price saw a notable expansion, it is now facing resistance at a prior distribution level, showing weak buying interest. The upper wicks of recent candles indicate that sellers are starting to take control and absorb the upward movement.
At the current price of $546.23 (down -2.64%), if the rejection from this level is confirmed, a pullback to test earlier demand zones could be in the cards.
Trading Plan – Short Setup on $BCH:
Entry Range: $545 – $555
Stop Loss (SL): $590
First Target (TP1): $520
Second Target (TP2): $495
Third Target (TP3): $460
Looking to capitalize on a potential price retracement. Stay vigilant for confirmation before entering.
