Bitcoin (BTC/USD) – Bearish Rejection from Supply ZoneThis chart represents a technical analysis of Bitcoin (BTC/USD) on the daily timeframe, highlighting key levels of resistance, support, and potential price movement. It indicates a bearish rejection from a supply zone, which suggests that BTC may experience further downside pressure.
Key Components of the Chart:
📌 1. All-Time High (ATH) + Resistance Zone (~$110,000 - $115,000)
This is the highest price level Bitcoin has ever reached on this chart.
It acts as a strong resistance zone, meaning sellers are likely to step in if the price approaches this level again.
📌 2. Supply Zone (~$88,000 - $90,000)
The supply zone is an area where selling pressure is high.
BTC attempted to break above this zone but got rejected, leading to a sharp decline.
This rejection confirms that bears are in control, pushing the price downward.
📌 3. Stop Loss (~$95,629)
This level represents the point where a bearish trade would be invalidated.
If BTC breaks above this level, it could indicate a shift in momentum toward bullish territory.
📌 4. Current Price Action (~$83,444)
BTC is currently trading below the supply zone, showing weakness.
The recent lower high formation suggests a continuation of the downtrend.
📌 5. Take Profit (TP) Level (~$65,969)
This is the target level for a potential bearish move.
The $65,969 level has acted as major support in the past, meaning buyers may step in here.
If BTC reaches this level, it could either bounce back up or break lower, leading to further downside movement.
📌 6. Major Support Level (~$45,000 - $50,000)
If BTC breaks below the $65,969 support, the next major support zone is around $45,000 - $50,000.
This area is historically significant and could provide a strong buying opportunity.
Trade Plan & Strategy:
🔴 Bearish Bias:
The rejection from the supply zone signals a continuation of the downtrend.
A short position can be considered if BTC fails to break above the supply zone again.
🎯 Trade Setup:
Entry: Around $85,000 - $88,000 (if BTC retests the supply zone and gets rejected again).
Stop Loss: Above $95,629 to protect against an unexpected bullish breakout.
Take Profit (TP): Around $65,969, targeting the next major support level.
Conclusion:
BTC is showing signs of a bearish continuation, with strong resistance at the supply zone.
A potential move toward $65,969 is likely if selling pressure continues.
If BTC breaks below this key level, a further decline toward $45,000 - $50,000 could happen.
⚠️ Disclaimer : This is not financial advice. Always conduct your own research before making trading decisions. 🚀📉
