In-Depth Bitcoin Price-Action Review
Update: 26/08/2025, 10:01:10
Current Market Trend
The price action displays a downtrend, evidenced by lower highs and lower lows, starting with a high of $118,879.14 and moving downwards to a low of $112,792.04.
Key Support and Resistance Zones
Key support levels are identified at around $113,000.00, where multiple candles have shown reactions, and at $112,800.00, visible from the recent lowest close and lows.
Breakouts
Breakdowns are visible below prior support levels that turned resistance, notably around $115,000.00 and $113,800.00.
Trading Plan
Considering the downward trend, the focus should be on short-selling opportunities following pullbacks to meaningful resistance levels.
Entry & Exit Points
Entry points for short positions could target pullbacks to the $113,800.00 or $114,000.00 levels. Stop losses could be placed just above these levels at around $114,500.00 and potential profit-taking around the $112,800.00 support.
Price Targets
If the downtrend continues, price may explore lower than $112,800.00, potentially testing $112,000.00 given the absence of significant support below until this threshold.
Profit & Loss (P&L)
For a short trade entered at $113,800.00 with a stop loss at $114,500.00, and a take profit at $112,800.00, the potential loss would be $700.00 per Bitcoin, and the potential gain would be $1,000.00 per Bitcoin. This setup offers a risk to reward ratio of approximately 1:1.43.
Trade Recommendations
Shorting on pullbacks to former support now turned resistance is advisable given the present bearish trend. Long positions should be cautiously considered only if there is a clear upward reversal pattern.
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