BTC/USD - Bearish Break & Retest SetupMarket Overview :
Bitcoin (BTC/USD) has broken below a key consolidation zone after trading in a range between $90,000 - $108,000 for several weeks. The price is now attempting a retest of the previous support, which has turned into a resistance (supply zone) before a potential continuation to the downside.
Chart Pattern & Technical Setup:
📉 Break & Retest Structure: The price has broken below the previous range and is now testing the $87,000 - $91,000 resistance zone.
📉 Lower High Formation: BTC is expected to create a lower high before continuing its downward trend.
📉 Bearish Wave Projection: The chart suggests a zigzag movement, forming successive lower highs and lower lows, targeting $67,399 as the next support level.
Trade Setup:
Bias: Bearish
Entry: Sell limit at $87,000 - $91,000 (Supply Zone)
Stop Loss: Above $95,000 (Invalidation Level)
Take Profit: $67,399 (Next Key Support)
Confluences Supporting Bearish Bias:
✅ Supply Zone Rejection: The resistance area is likely to attract sellers.
✅ Market Structure Shift: A break below the previous range indicates a trend reversal.
✅ Lower High Confirmation: A rejection at resistance will confirm the bearish outlook.
Risk Management:
Risk-Reward Ratio (RRR): 1:3+
Position Sizing: Adjust based on risk tolerance.
Alternative Scenario:
A break and close above $95,000 would invalidate the bearish setup, signaling a potential bullish continuation.
📌 Disclaimer: This analysis is for educational purposes only. Always manage risk properly before entering a trade.
