: Bearish Breakdown on the Horizon
Overview: I’m observing a developing descending triangle pattern on the 4-hour chart of DOTUSDT, indicating that a bearish breakout is imminent. The price action is consistently forming lower highs, signaling a potential move toward its support level. As the price nears this critical support zone, we’re likely to see a strong bearish $MOVE , and once the support breaks, the price is expected to reach its next potential target.
Market Context: The dominance of USDT plays a pivotal role in shaping the price movements of Bitcoin and . Presently, the market has maintained respect for a key demand zone while also forming a liquidity pool on the upper side, hinting at potential liquidity grabs. Price action is showing strength, particularly after reacting sharply from the demand zone and breaking through a descending trendline, suggesting a potential shift in momentum. The MACD indicator has also printed a bullish crossover, pointing toward increasing upward momentum. This suggests that the market may soon target the liquidity pool above.
Liquidity Analysis: Liquidity in the market acts as a magnet, drawing price toward high-volume zones. These deep yellow regions represent areas of heavy order flow, making them prime targets for market movement. When combined with confirmation from correlated indicators, this provides a powerful tool for predicting price direction with high confidence.
Trade Setup:
Entry Price: 6.336
First Target: 6.004
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