Bearish Rejection at Resistance – Potential Drop Incoming🔍 Chart Analysis Summary
1. Key Zones
Resistance Zone: ~$3,340 – $3,360
Price has been rejected multiple times from this area, showing strong selling pressure.
Support Zone: ~$3,200 – $3,240
Strong historical support level, previously held during a pullback after the last rally.
2. Moving Averages
EMA 50 (Red): Currently at ~$3,340
Price is fluctuating around it, indicating short-term indecision or a possible retest.
EMA 200 (Blue): Currently at ~$3,300
Acting as a mid-term support level. Price previously bounced from this region.
3. Pattern and Price Action
Fakeout Potential:
The chart suggests a possible false breakout above the resistance followed by a sharp drop—highlighted by the arrow. This is a common bull trap setup.
Bearish Outlook Indicated:
The projected path suggests a rejection from resistance and a drop to the support zone (~$3,200). This would create a lower high, a bearish sign.
4. Trading Bias
Bearish Setup if:
Price fails to hold above $3,340 (EMA50).
Price gets rejected from the resistance zone and breaks below $3,300 (EMA200).
Bullish Invalidated if:
Price closes convincingly above the $3,360 resistance with volume, flipping it into support.
📉 Potential Trade Idea
Short Entry: Around $3,350–$3,355
Stop Loss: Above $3,365 (above resistance zone)
Target: $3,220–$3,230 (support zone)
