BTC/USD is trading within a descending channel, and price is now testing a key resistance zone near $84,500. If sellers step in, we could see a strong rejection leading to a further drop.
Trade Setup:
Short Entry: Near $84,500 – $85,000 (resistance zone)
Stop Loss: Above $87,400 (to invalidate bearish setup)
Target: $71,700 – $71,500 (lower boundary of the channel)
Technical Factors:
️ Bearish market structure with lower highs and lower lows
️ Resistance zone acting as a strong supply area
️ Descending channel guiding price lower
Trading Plan:
Look for rejection signs (bearish wicks, engulfing candles, or trendline rejections) before confirming a short position.
A break above $87,400 could invalidate this setup and signal a potential reversal.
What’s your view? Will Bitcoin break down, or are the bulls ready to take control? Let’s discuss!