BTC - Possible Rejection? Good Short Entry
My, Bitcoin sure took a huge tumble following regulation news. Looking at the bigger picture, we are definitely looking for short opportunities. More below:
Firstly, we see price action somewhat following fib levels, especially at the 1.618 level. This means that price is likely to face rejection at the current closest fib level of 2.618. Which we saw, faced a beautiful rejection in the previous candle.
On top of that, we're at the resistance of the downward trendline which has proven to be a tested resistance level for the past 3 times. Will the price reject this time round? We won't be sure, as with trading. But what we do know is that our risk-to-reward is looking pretty attractive in this setup.
If you notice, my Take Profit levels are somewhat conservative considering the huge downtrend of BTC. This is because for the previous low at $38,209 levels, we see buyers stepping up to keep the price at that level. Chances of the next dip reaching bouncing off those levels seems likely, setting up a potential double bottom, which I would be looking to long if it breaks above neckline with confirmation.
Happy trading
Firstly, we see price action somewhat following fib levels, especially at the 1.618 level. This means that price is likely to face rejection at the current closest fib level of 2.618. Which we saw, faced a beautiful rejection in the previous candle.
On top of that, we're at the resistance of the downward trendline which has proven to be a tested resistance level for the past 3 times. Will the price reject this time round? We won't be sure, as with trading. But what we do know is that our risk-to-reward is looking pretty attractive in this setup.
If you notice, my Take Profit levels are somewhat conservative considering the huge downtrend of BTC. This is because for the previous low at $38,209 levels, we see buyers stepping up to keep the price at that level. Chances of the next dip reaching bouncing off those levels seems likely, setting up a potential double bottom, which I would be looking to long if it breaks above neckline with confirmation.
Happy trading
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