BTC/USDT 1-Hour & 15-Minute Chart Analysis: Key Levels, SMT Divergence, and IFVG Liquidity Hunting Strategy
Instrument: BTCUSDT
Time Frame: 4 hour
Exchange: Bitget
Trading Type: Swing Trading
BTC/USDT Daily Update (1-Hour Chart)
Hello, before diving into the chart analysis, I must say the weather has been fantastic lately, lifting my mood! I hope everyone is enjoying a pleasant autumn.
Now, moving on to the Bitcoin 1-hour chart:
#1. Bitcoin Channeling Pattern:
Currently, BTC is maintaining a very clean upward channeling pattern on the 1-hour chart, showing a steady uptrend.
However, as it approaches the $65,000 resistance zone, Bitcoin is starting to stall.
#2. SMT Divergence:
At the $65,000 level, Bitcoin has formed a bearish SMT divergence with Ethereum.
While SMT signals don’t guarantee an immediate drop, the fact that it appeared near a significant resistance level increases its reliability.
#3. RSI Bearish Divergence:
In addition to the SMT signal, the RSI indicator is showing a bearish divergence, suggesting that buying pressure is weakening as BTC struggles at this resistance zone.
#4. 1-Hour Chart Conclusion:
Bitcoin is still within its upward channel, but it has failed to break through the $65,000 resistance level. The simultaneous appearance of both SMT and RSI divergences could be an indication that a short position may be appropriate.
However, it’s crucial to monitor lower timeframes and Ethereum’s movements for additional confirmation before making any decisions. I’ll now move to the 15-minute chart for further analysis.
BTC/USDT 15-Minute Chart Analysis
If I were to take a short position today, I would do so only if BTC follows the expected scenario and reaches the area marked as IFVG
(Inverse Fair Value Gap).
Here are the key points:
#1. SMT Divergence Formation at IFVG:
The first crucial factor is whether BTC and ETH form a bearish SMT divergence when BTC reaches the IFVG area. This will be an essential confirmation for me to consider entering a short position.
#2. Why IFVG is Significant:
Liquidity Hunting: The reason I consider IFVG to be a valid area is that liquidity has accumulated in this zone.
The market often moves to "hunt" this liquidity, causing rapid price fluctuations. If, upon reaching the IFVG, BTC makes a false move upward to hunt liquidity and then quickly reverses, it would create an ideal scenario for a short position. During this move, the formation of an SMT divergence is critical to solidify my confidence in taking the short. The divergence would suggest that smart money is shifting and confirm my entry strategy.
Please refer to the attached image for more details on the Inverse Fair Value Gap (IFVG).