BTC/USDT 4H Technical Analysis – Potential Long Setup
Instrument: SOLUSDT
Time Frame: 4 hour
Exchange: Bitget
Trading Type: Swing Trading
BTC/USDT 4H Technical Analysis – Potential Long Setup
I am seeing a potential long setup on BTC/USDT on the 4-hour chart due to several key reasons:
Market Structure
BTC is currently in a clear downtrend, with successive Lower Highs and Lower Lows. The last Lower High was around $58,073 USDT, and the most recent Lower Low is near $53,667 USDT.
Despite this downtrend, there’s a Market Structure Shift (MSS), signaling a potential reversal as price broke through a key Flip Zone + FVG (Fair Value Gap), indicating a possible shift to bullish momentum.
Flip Zone + FVG (Fair Value Gap)
The Flip Zone + FVG is a critical area. This zone was initially respected as resistance but has since flipped to support, suggesting buyers are stepping in. Notably, the FVG lies within the premium zone of the downtrend, indicating the potential for higher prices.
If BTC was still in a strong downtrend, we would expect price to reject from this zone. However, since it reversed through this area, I’m seeing it as an opportunity for a long position.
Liquidity Target and Untaken Levels
There’s an untaken liquidity zone around $58,519 USDT on the daily chart, where previous highs haven’t been challenged. This area contains a Fair Value Gap and offers a solid target for the price to move toward, as it aligns with the liquidity grab theory.
This untapped liquidity makes $58,520 USDT a prime take-profit target.
Long Setup & Strategy
I’m planning to enter a long position around $55,420 USDT, which aligns with a potential retracement back into the Flip Zone + FVG. This area represents a strong confluence zone where price may retrace before continuing its bullish momentum.
A key point here is that I will be monitoring the lower timeframes to confirm the entry and to fine-tune my stop-loss.
Risk Management (Stop Loss & Take Profit)
My stop loss will be placed below the SSL (Swing Structure Low) at $53,667 USDT, ensuring protection in case the reversal fails and the downtrend resumes.
The take profit target is $58,520 USDT, which is where the untaken liquidity lies. This area offers high liquidity, and the market is likely to reach this zone before considering a potential reversal or consolidation.
Conclusion
This long setup is based on the following factors:
#1. The market has flipped a key resistance zone into support (Flip Zone + FVG), indicating a potential trend reversal.
#2. Untaken liquidity above $58,519 USDT aligns with my take-profit target, and the retracement to $55,420 USDT presents a favorable entry point.
#3. Risk management will be handled by placing a stop below $53,667 USDT, ensuring a good risk-reward ratio.