BTC/USD) Trend channel analysis setup Read The Chaptian

SMC Trading point update



technical analysis of Bitcoin (BTC/USD) on the 1-hour timeframe. It showcases a potential breakout continuation vs. pullback scenario, depending on how price reacts around a key short-term resistance area.


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Key Observations:

1. Current Price:
$93,754 — Price is consolidating just below a local high.


2. Support and Resistance Zones:

Support BOS (Break of Structure): Around the $87,351 level, highlighted in yellow.

Upper Target Zone: $98,954–$98,983

200 EMA: Near $86,926, offering dynamic support.



3. Two Possible Scenarios:

A. Bullish Continuation:

If the price holds above the immediate structure and breaks out of the short-term consolidation near the top:

It may surge toward the upper target zone ($98,983).

This aligns with the ascending channel and continuation pattern.



B. Bearish Pullback:

If the price fails to sustain above the resistance area:

A correction down to the support BOS zone (~$87,351) is likely.

This pullback may be temporary, potentially offering a re-entry zone for bulls.




4. RSI Analysis (Bottom of Chart):

RSI is showing signs of bearish divergence (price making higher highs while RSI makes lower highs).

This suggests momentum is weakening, and a short-term pullback could occur.





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Trade Ideas:

Long Setup (Breakout):

Entry: Above recent high (~$94,500).

Target: ~$98,950

Stop Loss: Below ~$92,000


Short Setup (Rejection):

Entry: Rejection near ~$94,000–$94,500

Target: ~$87,350

Stop Loss: Above ~$94,800


Mr SMC Trading point

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Summary:

This analysis reflects a critical decision point for BTC/USD. Price is nearing a local high with RSI divergence suggesting a pullback may come first — but if buyers remain strong and break resistance, a continuation toward 98K is likely. Wait for confirmation of direction before entering.




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