"BTC at Critical Reversal Zone – Watch This Key Liquidity Trap

"BTC at Critical Reversal Zone – Watch This Key Liquidity Trap 🎯"

Market Structure Overview
BOS (Break of Structure): Multiple BOS points indicate shifts in trend phases, first to the downside (end of July to early August) and then back to the upside.

BOL (Break of Low): This marked a key liquidity grab before the reversal rally began.

Liquidity Zones: The chart highlights both sell-side liquidity (below lows) and buy-side liquidity (above highs), showing where institutional traders hunt stops.

2. Key Supply & Demand Zones
Support Zone (112,500 – 114,500): This level acted as a demand base after the liquidity sweep in early August. Price reacted strongly here, triggering the bullish leg.

Previous Resistance (121,500 – 122,500): This zone has capped price multiple times, making it a critical area for sellers to defend.

3. Current Trade Setup
Entry Zone: Around 120,000 – 120,400, where a short setup is triggered upon rejection.

Stop Loss: Above 122,120, just beyond the resistance to avoid premature stop-outs.

Target: 116,500 – aligning with prior liquidity pools and structural support.

4. Educational Takeaways
Liquidity Hunts: Notice how price often spikes into liquidity pools before reversing—this is common in BTC’s volatile environment.

Confluence Trading: The short setup aligns with resistance retest + liquidity grab + BOS, increasing probability.

Risk Management: Using defined zones for stop loss and target helps maintain a favorable risk/reward ratio.

Summary:
BTC is currently respecting the higher-timeframe resistance zone, with a clear short-term bearish setup in play. A rejection from the entry zone could trigger a drop toward the 116,500 target. Traders should monitor price action closely and avoid chasing entries—patience and precision are key.

Trade closed: target reached

BTC Target Achieved 🚀
Our Bitcoin setup has successfully hit the projected target with precision. The price moved exactly as anticipated, respecting key levels and confirming our analysis. This trade was based on strong technical confluence, including market structure, support/resistance, and momentum signals.

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