BTCUSDT - High-Probability Short Setup
2025-01-25
Category: None

Resistance Rejection: Price rejected at a horizontal resistance zone, showing bearish pressure with wick formations indicating seller dominance.

Trendline Respect: Price respects a descending trendline, supporting bearish continuation probabilities.

EMA Confluence: Below the 50 EMA, signaling weakening bullish momentum.

Volume Decline: Reduced buying volume suggests fading demand, aligning with bearish sentiment.

Indicators Align Bearish:

RSI trending downward near midline.
MACD showing a potential bearish crossover.
Risk/Reward: Favorable 2.09 ratio, with clear invalidation above resistance and significant downside potential.

Cloud Base Test: A break below the Ichimoku Cloud base could accelerate bearish movement.

Probabilities:
Bearish Continuation: ~65%.
Bullish Recovery: ~35%.
Plan:
Entry: On a breakdown below horizontal support.
Stop Loss: Above resistance.
Target: Next support zone or lower trendline.
Multiple confirmations favor a short trade setup. Manage risk effectively.