BTCUSD Short: Fading the Rally in a Bear Channel

[Antony Bishop]

Hello, traders! The price auction for BTCUSD has been in a clear bearish phase since its rejection from the SUPPLY ZONE 2 near 115200. This has established a well-defined descending channel that has been guiding the price lower through a series of impulsive declines and corrective rallies, confirming that sellers have the initiative.

Currently, after testing the lower support line of the channel, the price is in the midst of a corrective bounce. This upward move is carrying the auction towards the upper boundary of the channel, which represents a major area of dynamic resistance.

My scenario for the development of events is that this corrective rally will fail upon testing the channel's resistance line, which aligns with the SUPPLY ZONE around the 111000 level. I expect this area to hold as strong resistance, causing a rejection and a continuation of the primary downtrend. The take-profit is therefore set at 107000, targeting a new lower low within the channel. Manage your risk!