$BTC to $71K Before Bounce? Shorting $XRP at $2 Could Be an Opportunity
Market Overview
Bitcoin ( $BTC ) is currently experiencing a pullback after failing to sustain momentum above key resistance levels. Analysts suggest that BTC could drop to $71,000 before finding support and bouncing. If this scenario plays out, altcoins like XRP may follow the downward trend, presenting potential shorting opportunities.
Bitcoin’s Key Levels to Watch
• Support Zone: $71,000 – $70,500
• Resistance Zone: $73,500 – $74,000
• Indicators: BTC has shown lower highs on the 4-hour chart, suggesting weakening bullish momentum. If the price reaches $71K, traders will look for signs of a reversal or further downside.
XRP Short Setup at $2
As BTC declines, XRP could see increased selling pressure. Traders looking to short XRP should monitor the following:
• Resistance Zone: $2.10 – $2.20 (Potential rejection area)
• Support Zone: $1.90 – $1.75 (Possible target range)
• Indicators: Look for bearish divergence, break of key support levels, and rejection from moving averages (EMA 50/200) on the 1H or 4H timeframe.
Risk Management & Trade Strategy
• Entry: Short near resistance ($2.10 – $2.20)
• Stop-Loss: Above recent swing high (e.g., $2.25)
• Take Profit Targets: $1.90, $1.75, $1.50
• Leverage: Use caution with leverage; high volatility can trigger liquidations.
Conclusion
If Bitcoin dips to $71K before rebounding, XRP and other altcoins may follow suit. Traders should wait for confirmation before entering short positions and manage risk carefully. Always stay updated on BTC price action, as any unexpected bounce could invalidate short trades.
