š Market Structure Analysis (BTC/USDT ā 1H Chart)
1. Price is approaching a key resistance zone
You have marked a horizontal supply/resistance area.
Price is currently pushing into that zone after a corrective move upward.
This zone is important because:
- Price previously reacted strongly from here (origin of the major drop).
- It aligns with the 20 & 50 EMA cluster, which often acts as dynamic resistance.
2. Two possible scenarios you drew are realistic
šµ Scenario A ā Bullish Breakout
If buyers are strong enough:
- Price rejects slightly from resistance.
- Forms a higher-low just under the zone.
- Breaks above the resistance with strong volume.
ā”ļø This could lead to a bullish continuation toward the top of the green zone (your probable target area).
šµ Scenario B ā Bearish Rejection (More Likely)
Given the strong prior downtrend:
- Price taps the resistance zone.
- Fails to break above.
- Forms a lower high.
- Breaks back down.
ā”ļø This could send the price back toward the lower demand zone you marked.
3. Trend Bias
- The market is still in a short-term downtrend.
- EMAs (20/50) are above price ā still a bearish market structure.
- For a true reversal, price must close above the resistance zone and hold it as support.
4. Your Risk/Reward Zone
The green/red box you placed shows:
- Stop-loss below the resistance zone
- Take-profit higher
This is valid only if you trade the breakout.
But if the price rejects the zone, short setups become more favorable.
5. Summary
- The marked resistance zone is the key decision point.
- A breakout = bullish continuation.
- A rejection = bearish continuation toward the lower demand box.
- Watch for candle confirmation and EMA alignment.
