As the broader crypto market faces a bearish correction, short-term traders may find a lucrative opportunity with Shiba Inu (SHIB). The asset has met all the necessary criteria for entering a position with a favorable risk-to-reward ratio, presenting an attractive setup for those looking to capitalize on market conditions.

4-hour time frame analysis

SHIBUSD - 4 Hour Time Frame

The primary factor supporting this opportunity is the initial selection of sell-side liquidity, with the low formed by this spike situated within a key support zone. This zone has shown a positive price reaction aligned with bullish indicators.

After the liquidity selection, it is essential for retail traders to wait for position confirmation. In this case, the singular Fair Value Gap (FVG), which acted as resistance, has been closed.

However, the downside risk to this setup lies in the persistent internal bearish structure. In simple terms, while the structure remains bearish, the bullish indicators are forming as part of a correction within that bearish trend.

When to buy Shiba Inu?

A buy trade is viable since the liquidity selection has been completed and resistance has been broken. The Stop Loss (SL) for this position should be placed below the external low, with two Take Profit (TP) levels set at key buy-side liquidity points, which are necessary for commercial market participants to exit their buy positions.

By carefully monitoring these levels, traders can maximize their potential profits while managing risk in this short-term trading opportunity with Shiba Inu.