Potential Low Risk High Reward BTC Short
BTC/USDT Perpetual Futures contract is approaching a key area. If it fails to break out past the 21800-21900 area, there's a good chance that it may drop to the previous consolidation zone around 20k, or drop even further to the 18900 region.
That being said there's a chance for a great risk to reward trade if BTC/USDT shows signs of faltering at the 21800-21900 level. I'm looking for bearish divergence on the 4-hour chart to signal rejection of this area, at which point I will get short with my stop being placed around 22k, with an initial target of 20k.
As traders ,we are looking for trades with good risk to rewards ratios. This would certainly qualify as this trade provides roughly 5.1 R/R
That being said there's a chance for a great risk to reward trade if BTC/USDT shows signs of faltering at the 21800-21900 level. I'm looking for bearish divergence on the 4-hour chart to signal rejection of this area, at which point I will get short with my stop being placed around 22k, with an initial target of 20k.
As traders ,we are looking for trades with good risk to rewards ratios. This would certainly qualify as this trade provides roughly 5.1 R/R