BTC/USDThe BTC/USD trade with an entry price of 113,461, stop-loss at 113,735, and exit price at 112,913 is a short-term sell trade setup. In this scenario, the trader expects Bitcoin’s price to decline after entering at 113,461, targeting a profit at 112,913. The total potential profit is around 548 points, while the risk is about 274 points, giving a favorable risk-to-reward ratio of nearly 1:2.
The chosen entry price indicates that BTC may be at a resistance level or showing bearish confirmation signals, such as a rejection from a higher level, bearish candlestick patterns, or overbought conditions on indicators like RSI or MACD.
The stop-loss at 113,735 is placed above the entry to limit losses if the market reverses upward. This level is chosen just beyond the resistance zone to avoid being stopped out by minor fluctuations.
The exit price at 112,913 is the target level, likely based on a nearby support zone or a projected price move.
This trade setup reflects disciplined trading with defined risk and profit targets. By adhering to the plan and avoiding emotional decisions, the trader can manage risk effectively while seeking profits from short-term BTC/USD downward movements.
