BTC Short to 62k
2025-02-04
Category: None

Distribution Structure:  

The chart shows a clear distribution pattern at the top (highlighted in gray), indicating a potential reversal zone. This structure suggests that buying pressure is weakening, and we may see a price pullback or correction.

BTC.D at Key Level: Bitcoin dominance (BTC.D) is currently at a key level, and we are expecting a retracement here. The confluence between the distribution structure on BTCUSDT and the critical BTC dominance level enhances the likelihood of a short opportunity.

Price Action: After reaching the distribution zone, BTC has shown signs of slowing momentum, which further suggests that a pullback or continuation of a downtrend could occur.

Target Range:

The short position could be targeted toward the lower consolidation levels, with a focus on the $87,500 - $85,000 area. The lower end of the original consolidation zone provides strong support that could act as a potential reversal zone.

Risk Management:

Set stops just above the distribution structure to manage risk effectively. Keep the risk-to-reward ratio favorable for the expected move.
