OPUSDT | SMC-Based Analysis
2025-01-17
Category: None

Crypto Trust Capital analysis  t.me 

 Description: 
In this idea, we analyze OPUSDT using the Smart Money Concepts (SMC) strategy, focusing on market structure shifts, supply and demand zones, and liquidity sweeps. The current setup shows a potential bullish reaction after a liquidity grab at a significant low. Here's the step-by-step breakdown:

 Analysis: 
Market Structure:

The price recently formed a CHoCH (Change of Character), signaling a potential shift in trend direction.
A strong high is identified near $2.12, acting as a key resistance level where sellers may dominate.
A weak low is marked at $1.65, indicating potential for liquidity grabs or a reversal.
Supply and Demand Zones:

Demand Zone: Highlighted in blue around $1.65-$1.70. This zone aligns with the last major bullish push before the break of structure (BOS).
Supply Zone: Highlighted in red around $2.10-$2.15. This area aligns with a strong high and previous imbalance.
Liquidity:

The equal lows (EQL) around $1.65 act as a liquidity magnet where smart money might hunt for stop losses.
On the higher side, the strong high near $2.12 has untapped liquidity from short-term sellers.
Entry and Risk Management:

Long Position:

Entry: Within the demand zone ($1.67-$1.72).
Stop Loss: Below $1.62 to account for liquidity sweeps.
Take Profit 1 (TP1): $1.95 at the mitigation of imbalance.
Take Profit 2 (TP2): $2.10 at the supply zone.
Risk-Reward: Aim for a 1:3 RR ratio with conservative scaling out at TP1.

Confluence Factors:

Bullish OB (Order Block) formation near demand zone.
Liquidity sweep below weak lows before bullish movement.
CHoCH confirms potential reversal and entry setup.


 Trade Plan: 
Long Entry (Buy):
Entry Zone: $1.67-$1.72 (inside the purple/gray zone in the chart).
Stop Loss (SL): lower $1.62 (below weak low and liquidity).
Take Profit Levels:
TP1: $1.95 (partial profit).
TP2: $2.10-$2.12 (final target at the supply zone).
Short Entry (Sell):
If price reaches the supply zone ($2.10-$2.15), look for signs of bearish CHoCH and enter a short position.
Entry Zone: $2.10-$2.15.
Stop Loss (SL): $2.20 (above the strong high).
Take Profit Levels:
TP1: $1.95.
TP2: $1.75 (demand zone).