I see that everyone is selling hard, so I'm making a liquidity pool 😅

$BNX



Hey Binance Square Fam! 👋
BNX (BarnBridge) is showing some interesting movements, and I'm seeing a potential short trade opportunity brewing. Let's break down the chart and discuss the setup! 🧐
Quick Recap:
Remember my previous analysis? We were initially eyeing the 0.618 Fibonacci retracement level for a short entry. While the price didn't quite reach that level, it came close and then got rejected by the upper resistance trendline of the pitchfork pattern. This rejection triggered a sharp 13% drop down to $0.8278! So far, so good! 👍
Current Situation:
After a small bounce, I'm anticipating the price to continue its descent towards the support zone between $0.8 and $0.78. Adding to the bearish outlook, BNX has lost the Value Area Low (VAL) and the daily support level, which are now acting as resistance. The daily support sits at $0.8939, and the VAL is just below at $0.8846. This zone has already been tested and rejected, making it a prime shorting opportunity!
Looking Ahead:
If the bulls try to make a comeback and push the price up to around $0.91 (testing the previous broken low, which aligns with the 0.618 fib retracement), that would create an ideal low-risk, high-reward short opportunity!
Short Trade Ladder Strategy - How to Enter:
* Entry Range: I'll be using a laddered short entry strategy, placing multiple short orders from the VAL at $0.8846 up to the 0.618 fib retracement at $0.9126. This allows me to scale into the position and potentially get a better average entry price.
* Stop Loss (SL): My stop loss will be placed above the daily open to protect my capital if the price moves against me. [Important: Mention the exact stop-loss price if possible.]
* Target: I'm aiming for a target within the support zone at $0.8–$0.78.
* Risk/Reward Ratio: This setup offers a favorable risk/reward ratio of approximately 3:1. This means the potential profit is three times greater than the potential loss.
[Enhance with Chart Analysis Details] 📊
* [Explain what the pitchfork pattern signifies and why the rejection from the upper trendline is bearish.]
* [Explain the significance of the Value Area Low (VAL) and why it acting as resistance is bearish.]
* [Mention other indicators or patterns you see on the chart that support your analysis, e.g., RSI, MACD, volume, etc.]
For Example:
"The pitchfork pattern suggests a potential downtrend, and the rejection from the upper trendline confirms the bearish bias. The Value Area Low (VAL) is a key level that represents the area of greatest trading activity. When the price loses the VAL and it starts acting as resistance, it's often a bearish signal. The RSI is also below 50, indicating bearish momentum."
Important Reminders:
* Confirmation is Key: Wait for clear confirmation signals before entering the trade. Don't jump in prematurely!
* Not Financial Advice: I'm sharing my trading idea, but always do your own research before making any decisions. Crypto trading is risky!
* Be Flexible: Be ready to adjust your strategy if market conditions change.
Stay Tuned!
I'll keep you updated as this trade develops. Follow me on Binance Square for more trading ideas and analysis!
Let's Discuss!
What are your thoughts on this BNX setup? Are you seeing something similar on your charts? Share your insights in the comments below! 👇
#BNX #BarnBridge #Crypto #ShortTrade #Trading #BinanceSquare #Breakdown #Pitchfork #Fibonacci #VAL #RiskManagement #DYOR
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