Overview: Bitcoin (BTCUSD) is currently trading within a significant resistance zone at $65,000 - $66,000, a level that has historically hindered upward momentum. Several technical indicators are aligning to suggest a potential short-term downside move.
Technical Analysis:
Below VWAP & EMAs:
On the 1-hour chart, BTC has fallen below the Volume Weighted Average Price (VWAP), indicating bearish short-term sentiment.
The price is also trading under the 13 and 21 Exponential Moving Averages (EMAs), reinforcing the bearish momentum.
High Volume Node (HVN):
BTC is currently below a High Volume Node, suggesting overhead resistance at this level and increasing the likelihood of a downward move.
Relative Strength Index (RSI):
The daily RSI is in the overbought territory, implying that the asset may be due for a correction.
On the 1-hour chart, the RSI is below 50 and trending downward, indicating weakening buying pressure in the short term.
Trade Setup:
Entry Point: Consider entering a short position around the current price level within the resistance zone.
Stop Loss: Place a stop loss above $66,500-$67,000 to manage risk in case of a bullish breakout.
Take Profit Targets:
First target at $63,000, near recent support & HVN (high volume node support levels.
Conclusion: The confluence of these technical factors increases the probability of a short-term downside move for BTC. As trading is about managing probabilities, this setup presents a favorable risk-to-reward ratio for a short trade.
Technical Analysis:
Below VWAP & EMAs:
On the 1-hour chart, BTC has fallen below the Volume Weighted Average Price (VWAP), indicating bearish short-term sentiment.
The price is also trading under the 13 and 21 Exponential Moving Averages (EMAs), reinforcing the bearish momentum.
High Volume Node (HVN):
BTC is currently below a High Volume Node, suggesting overhead resistance at this level and increasing the likelihood of a downward move.
Relative Strength Index (RSI):
The daily RSI is in the overbought territory, implying that the asset may be due for a correction.
On the 1-hour chart, the RSI is below 50 and trending downward, indicating weakening buying pressure in the short term.
Trade Setup:
Entry Point: Consider entering a short position around the current price level within the resistance zone.
Stop Loss: Place a stop loss above $66,500-$67,000 to manage risk in case of a bullish breakout.
Take Profit Targets:
First target at $63,000, near recent support & HVN (high volume node support levels.
Conclusion: The confluence of these technical factors increases the probability of a short-term downside move for BTC. As trading is about managing probabilities, this setup presents a favorable risk-to-reward ratio for a short trade.
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.
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.