Is BTC heading for another drop?
Based on the shared chart, Bitcoin is currently in a critical technical position, having formed an โEvening Starโ candlestick pattern โ a classic bearish reversal signal โ near a heavy resistance zone.
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๐ Chart Breakdown:
๐ด Heavy Resistance Zone (101,700 - 104,000 USDT)
The chart clearly marks a strong resistance area where the price has been rejected multiple times. This zone also coincides with Cumulative Short Liquidation Leverage, indicating that short positions were liquidated here earlier, leading to temporary spikes.
๐ป Evening Star Pattern
This bearish candlestick pattern often signals a trend reversal. Since it formed near resistance, it increases the likelihood of a downward move in the short term.
๐ Descending Trendline + Ascending Channel Rejection
Price tested the upper boundary of an ascending channel, failed to break through, and began to move downward again โ a potential channel failure, pointing to a shift in momentum toward the bears.
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๐ก Key Technical Levels:
Monthly Pivot Point: Price showed minor support around this level. If it breaks below, it could trigger a stronger bearish move.
Support Zone (97,000 โ 98,500 USDT): A crucial area where buyers may step in again.
Cumulative Long Liquidation Leverage: This zone (~95,000 - 96,000 USDT) marks potential long liquidations if the price drops further.
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๐งฎ Potential Trade Setups:
1. Short Setup:
If the price retests the resistance zone and gets rejected again โ especially with confirmation from the Evening Star โ it could be an ideal point for short entries.
2. Buy on Support:
If the price dips into the 97kโ95k support zone and shows signs of a bounce, this could offer a solid long entry with favorable risk/reward.
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๐ Conclusion:
The current technical setup suggests a bearish bias for BTC in the near term. The Evening Star pattern, combined with repeated resistance rejections, strengthens this view. A confirmed break below 98k could lead to targets around 95kโ96k.
