Setup Type: Bearish Breakdown – Key Level Failure
Trade Plan: Short Position
Entry & Exit Plan
Entry Zone: ~$88,111 (Breakdown Confirmation)
Stop-Loss (SL): $88,639 (Resistance & Invalidation Level)
Take-Profit Targets:
TP1: $87,502 – Minor Support Zone
TP2: $86,515 – Major Support Level
Risk-Reward Breakdown
Risk: $88,639 – $88,111 = $528
Reward to TP1: $88,111 – $87,502 = $609 → 1:1.15
Reward to TP2: $88,111 – $86,515 = $1,596 → 1:3.02
Strong bearish setup with excellent reward potential, especially at TP2!
Technical Breakdown
Bearish Breakdown: Price failing to hold above $88,111, signaling weakness.
Key Resistance: $88,639 acts as a critical level; a break above invalidates the setup.
Support Zones:
TP1 ($87,502): First area of interest for profit-taking.
TP2 ($86,515): Deeper support for a larger move.
Momentum Bias: Bearish if price remains below $88,111 with volume.
Execution Strategy
Wait for Confirmation: Enter only after a clear breakdown below $88,111 (e.g., a strong bearish candle close with volume).
Partial Profit Booking:
Book 50% at TP1 ($87,502) to lock in gains.
Let the remaining position run toward TP2 ($86,515).
Stop-Loss Management: After hitting TP1, move SL to break-even (~$88,111) to eliminate risk.
Monitor Market Conditions: Keep an eye on Bitcoin dominance, U.S. market correlation, and any news that could impact price action.
Risk Considerations
False Breakdowns: If the move below $88,111 lacks volume or momentum, price could reverse back toward resistance.
Volatility Risk: Sudden news (e.g., macroeconomic events or crypto-specific updates) could push price above $88,639, triggering the SL.
Mitigation: Stick to the plan, avoid chasing, and use proper position sizing (e.g., 1-2% of account per trade).
Final Thoughts
Solid Bearish Structure: Tight risk with high reward potential (up to 1:3 at TP2).
Confirmation is Key: Don’t enter without a clear breakdown signal below $88,111.
Discipline Wins: Follow the plan, manage risk, and take profits strategically.
Risk Management + Patience = Consistent Profits
#Bitcoin #BTCUSD #CryptoTrading #ShortSetup #TradingView
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.
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.