earish trand analysis Read The Chaptian

1 Jun

SMC trading point update


Technical analysis of (BTC/USDT) based on the 4-hour timeframe. Here’s a detailed breakdown of the analysis and the idea behind it:


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Key Components of the Analysis:

1. Resistance Zone (FVG - Fair Value Gap):

The yellow zone marked as “fvg resistance level” indicates an area where price previously dropped quickly, suggesting inefficiency or imbalance in the market.

Price is approaching this zone again, which acts as a strong resistance.



2. Trendline & Lower Highs:

A descending trendline (with red arrows) shows consistent lower highs, indicating ongoing bearish pressure.

Each rejection from the trendline reinforces sellers’ dominance.



3. CHOCH (Change of Character):

The label “choch” signifies a market structure break, where bullish structure turned bearish.

This marks the transition to a downtrend.



4. EMA 200 (Exponential Moving Average):

The EMA (currently around 102,753) acts as dynamic support.

Price is currently trading above it, but a rejection from the resistance may push it below.



5. Target Zone:

A yellow box near 100,817.99 is labeled “target point”, indicating a possible short-term bearish target if price gets rejected at resistance.



6. RSI (Relative Strength Index):

RSI is around 47.11, slightly below neutral (50), suggesting bearish momentum could be building.

No clear oversold or overbought conditions yet.





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Trade Idea Summary:

Bias: Bearish

Scenario:

If price reaches the resistance zone (~106,800–107,500) and fails to break above, a sell-off is expected.

First target: 100,800–101,000 zone

Price may also dip below EMA 200 confirming bearish strength.


Confirmation:

Rejection candle or bearish engulfing pattern near resistance.

RSI staying below 50 and starting to dip.


Invalidation:

Clean breakout and close above the resistance zone and trendline (~108,000+).





Mr SMC Trading point
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Conclusion:

This chart sets up a high-probability short trade around the resistance area, leveraging both structural and momentum indicators. It suggests waiting for confirmation of rejection before entering, targeting the previous support and imbalance zone below.




Pales support boost 🚀 analysis follow)

2 Jun

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