The Short-Term Scalp Opportunity: Targeting $91,400
On the 1-hour Bitcoin chart, a scalp opportunity (a quick trade) is emerging. The favored scenario anticipates a bounce from the current support zone. For aggressive traders, a long position (buy) could be considered around $88,200. The goal of this trade would be to capture the liquidity present in the upper part of the range, with a take profit target at $91,400.
To manage risk, a stop loss order would be placed just below the support at $87,200. This trade offers an attractive risk/reward ratio for those anticipating a technical bounce ahead of the FOMC announcement.
The 4-Hour Scenario: An Inevitable Return to $83,000?
However, zooming out to the 4-hour chart, the outlook is more bearish. The current market structure suggests that the short-term bounce may only be a prelude to a larger drop.
The most probable scenario is a return of price toward the bottom of the trading range, heading toward the significant order block (zone of concentrated orders) located around $83,000. This zone has already served as support in the past and will act as a magnet for price, especially if the FOMC announcement disappoints market expectations.
Liquidity Hunt: The $81,000 Trap and the Swing Opportunity
Financial markets often tend not to simply test obvious support levels. There is a strong chance that Bitcoin will hunt for liquidity just below the bottom of the range, executing a quick wick down to $81,000. This move, called a “deviation” or “stop hunt,” aims to trap traders who have placed their sell orders just below support.
For patient investors, this swing failure pattern scenario would represent an excellent accumulation opportunity, buying Bitcoin at a discounted price in anticipation of the bounce that typically follows this type of bearish trap.
In conclusion, the week promises to be volatile for Bitcoin. While a short-term bullish scalp opportunity exists, the underlying 4-hour trend points toward a correction. Traders will need to exercise caution, particularly around the FOMC announcement. The $83,000 zone is the first major appointment, but the $81,000 zone could be the real buying opportunity for those who can keep their composure. The key will be not getting trapped by false moves and sticking to a well-defined strategy.
For those who don’t know how to trade, Pionex bots allow you to buy Bitcoin while protecting against drops through algorithms. In total, 50 to 80% annual returns on top of your BTC, even during crashes and bear markets. Try them for free:
Related articles:
