BTC/USD potential reversal: shorting Bitcoin in an uptrend

Bitcoin is in an uptrend and made a substantial rally in the past couple of weeks. Price broke above the $40k resistance level recently, however, the price is in another resistance area currently and will possibly make some corrections.

The market structure has turned bearish on smaller time-frames and the price will possibly drop after retesting the $41,900 recent resistance level.

The price has also left a long wick to the upside which indicates bearish pressure. I will enter for a sell trade when the price retraces back to the $41,900 recent resistance level and my target for this trade is the $38,800 support level.

Fundamentally, the rally of Bitcoin is mainly driven by the weakening US dollar and the anticipated interest rate cuts in the future.

The NFP data will also be published on Friday and if the data turns out positive it will strengthen the US dollar and the price of BTC/USD will drop and if the data turns out negative the price of BTC/USD will likely go up.

•  The price of  BTC/USD will possibly drop to the $38,800 support level in the coming days.
• The price will possibly retrace to the $41,900 support level before the drop.
• Multiple take-profit levels have been added to secure profit along the way.
• The risk-to-reward ratio on this trade is 1:3.5.
• The entry and stoploss prices have been placed at secure levels with the least probability of getting hit.
• Good luck!

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