CryptoPM

$BTC /USDT 4H Trading Strategy – Smart Trade Setup

(Professional Trader Analysis)

Market Overview & Pattern Recognition

Trend Structure:

BTC formed a Higher High (HH) at $102,724 but failed to sustain an uptrend, leading to a Lower High (LH) ($97,777), indicating a potential trend reversal.

The market is showing lower highs and lower lows, signaling a bearish market structure.

Key Support & Resistance Levels:

Support: $91,231 and $89,256 (Potential demand zones)

Resistance: $97,777 (Major resistance for breakout)

RSI Analysis (Bearish Divergence Identified)

Bearish divergence at the HH (~$102,724) indicated weakening momentum.

RSI has been in a downtrend, recently bouncing at oversold levels, but lacks bullish confirmation.

Fibonacci Levels & Trendline Resistance:

BTC is below the key Fibonacci retracement level (0.618), suggesting further downside risk.

A descending trendline from the HH level is acting as a dynamic resistance.

Trade Setup – Short Opportunity (Sell)

Entry: $96,200 - $96,500 (Current price range)

Stop Loss: $98,000 (Above descending trendline resistance)

Take Profit 1: $92,300 (First key support level)

Take Profit 2: $89,500 (Major demand zone)

Risk-to-Reward Ratio: 1:3 (High R:R, ideal for a short setup)

Alternative Bullish Scenario – Long Setup (If Breakout Happens)

Entry: Above $98,000 (Confirmed breakout of LH level)

Stop Loss: $96,000

Take Profit: $102,700 (Next major resistance)

Pro Tip for the Trade Setup

✅ Risk Management: Use a 2% risk rule per trade to protect your capital.

✅ Confirmation: Wait for a 4H candle close below $96,000 for extra confluence in shorting.

✅ Divergence Watch: If RSI shows bullish divergence near $92,000, consider partial profit booking or reversing to long.

✅ Volume Analysis: A breakdown with high volume increases the chance of hitting TP levels quickly.

Let me know if you need refinements on this trade setup! 🚀📉

#Macro Insights# #BTC #BTC Price Analysis#