Bitcoin (BTC) is currently exhibiting a clear downtrend on the 4-hour timeframe.
During the most recent downward move, it left behind an imbalance, specifically, a 4-hour Fair Value Gap (FVG), which the price is now retracing toward.
This area represents a potential zone of interest for entering a short position, given the prevailing bearish structure.
At the same time, BTC is approaching the golden pocket of the Fibonacci retracement, a level often watched by traders for potential reversals.
This zone coincides with a former support level that provided multiple bounces in the past, but has now flipped into a potential resistance.
The confluence of these factors could add significant selling pressure.
It’s important to note that BTC does not necessarily need to reach the imbalance zone to resume its downward movement.
However, the presence of that FVG remains a relevant detail to monitor in case price action does continue higher before reversing.
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