Short entry positioned at $5.16, aligning with a strong supply zone and major resistance based on the 2.618 Fibonacci extension.
Stop loss set at $5.48, above recent highs and upper resistance to mitigate risk from volatility spikes and potential wicks.
Take profit targeted between $4.23 and $4.03, within a solid historical demand zone on high volume.
Setup offers favourable risk/reward ratio (approx. 1:3).
4H ADX currently at 23, indicating a modest trend but favouring range-bound trading strategies.
Main risk includes the possibility of false breakouts above resistance, leading to stop-outs before a reversal.
Price may find strong support around the take profit zone, causing potential bounce or stalling.
Broader market structure neutral to slightly bullish; range may eventually break after repeated tests.
Setup validity is reinforced if BTC and overall crypto market continue consolidating in established ranges.