BTCUSDT Analysis: Preparing for a Critical Zone Test
2025-01-08
Category: None

The 4-hour chart of  BTCUSDT  reveals a textbook retest of key levels following a sharp breakdown from the resistance near  $105,268 . This move is consistent with a broader bearish structure that began forming after rejection at  $108,366 . The current trajectory suggests Bitcoin may continue its downward momentum toward a high-probability liquidity zone between  $85,883  and  $89,510 . Here's why this area deserves close attention:


 Technical Breakdown: 

 1. Descending Trendline Rejection: 
The price recently respected the long-term yellow descending trendline, emphasizing the strength of sellers around $102,934.

 2. Support Zones: 
Immediate support at $96,920 has seen a weak bounce, increasing the likelihood of deeper retracements.
A stronger accumulation zone lies between $85,883 and $89,510 (highlighted in orange), which aligns with historical demand zones and Fibonacci retracement levels.

 3. Bearish Momentum: 
The rapid fall post-breakout indicates strong bearish momentum, confirmed by increasing sell volumes on key levels. Any short-term pullback toward $96,436 or $98,000 could serve as an opportunity to position for further declines.

 4. Indicators and Risk Management: 
Divergence signals suggest momentum exhaustion, and traders should anticipate potential short-term volatility. Use tight stop-loss placements and avoid overleveraging. For this setup, a stop-loss above  $98,920  is recommended to limit risk.


 Trade Plan: 

 Short Opportunity: 
If BTC retraces to $96,436 or $98,000, consider entering short positions with targets in the $89,510–$85,883 range. Stay vigilant and be prepared to pivot based on price action near critical levels. 

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Final Note:
Remember, no strategy is foolproof. Always consider market risks, manage positions carefully, and align trades with your broader portfolio strategy. Let the price action guide your decisions.
