While the possibility of yet another higher high can of course not be ruled out, the seen in recent hours (as compared to the price action at the former minor S/R zone between 2430 and 2480 CNY ) already suggests that we are in a range where the forces of are negotiating the future direction of the Bitcoin price.
Consider shorting the coin while the price is still near the potential reversal zone with a tight stop at or slightly above 2700 CNY and a potential first target within or near the (~2480 CNY ).
Should the price indeed return to the zone marked as "Support", observe the price action and depending on the outcome, consider tightening your stop loss and/or taking a small profit and let the rest of your position run.
What to look out for
- A breakout of the current consolidation zone would invalidate the trade.
- Should the price on the other hand turn down, observe the price action near (or in) the . An impulsive breakdown of the would confirm the trade.
- Likewise a bounce off the followed by a lower high (including a potential retest of the current consolidation zone), would confirm the setup and might offer a low risk opportunity to enter the trade.
- Should the price on the other hand return to the PRZ after reacting to support, consider the reversal failed and reduce or close your position.