Bearish Continuation Setup After Dead-Cat Bounce (1H)
What the chart is saying:
Clear bearish trend: Price has been making lower highs and lower lows. The broader structure is decisively bearish.
Range breakdown: The blue box shows a consolidation range that broke to the downside, confirming continuation rather than accumulation.
Strong sell-off into demand: Price aggressively dropped into the red support zone (~62k–64k), where buyers stepped in hard, creating a sharp bounce.
Relief rally, not reversal: The current move up is a retracement, not a trend change. Momentum looks corrective, not impulsive.
Key resistance zone (~71k–72k):
This green area is previous support turned resistance
It aligns with the breakdown level → classic short opportunity
Planned trade idea (as drawn):
Entry: Into resistance (green zone)
Invalidation: Clean acceptance above resistance
Target: Prior support / liquidity pool around 63k
R:R: Favorable if rejection confirms
Bias:
📉 Bearish below resistance
Only a strong breakout + hold above 72k would weaken the short thesis
What to watch next:
Rejection wicks, bearish engulfing, or momentum divergence at resistance
Volume drying up on the push into the green zone
Failure to reclaim broken structure
⚠️ This setup assumes trend continuation, not a bottom. Until structure flips, rallies are sell-the-rip candidates.
Short