Following the recent impulsive move, we’ve seen a significant number of short liquidations. There’s a high probability of a correction toward the accumulated liquidity near the lows. Additionally, keep an eye on the CME gap between $91,920 and $93,440 — a potential magnet for price.
The impulse itself shows signs of weakness, and there's a noticeable bearish divergence on the RSI, suggesting downward momentum. Price is currently testing a strong resistance area, corresponding to the 0.786 Fibonacci retracement level from the entire correction since the ATH. Moreover, the RSI has entered overbought territory.
I recommend starting to look for short entries from this zone, supported by these technical signals. As always, proper risk management is essential.
Looking forward to hearing your thoughts and feedback on this idea!
The impulse itself shows signs of weakness, and there's a noticeable bearish divergence on the RSI, suggesting downward momentum. Price is currently testing a strong resistance area, corresponding to the 0.786 Fibonacci retracement level from the entire correction since the ATH. Moreover, the RSI has entered overbought territory.
I recommend starting to look for short entries from this zone, supported by these technical signals. As always, proper risk management is essential.
Looking forward to hearing your thoughts and feedback on this idea!
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.