ForgeTrades

BTC daily update - 4H and 1H timeframes reviewed

FTX:BTCPERP   Bitcoin Perpetual Futures
4H
Price made a good push into a key level, sweeping the previous high and closing above the 200 EMA , however we are still trading below the sweep of the high.
In order to see further upwards momentum in the short term, the key level and 200 EMA need to hold.
Comment: 1H
The 1H timeframe has been showing some good strength. Price has increased ~18% over the past few days, pushing RSI into overbought territory. The 100 and 200 EMAs have now crossed over and price is trading well above the EMAs.
There are however a few signs that price is losing momentum, at least in the short term. Volume is starting to decrease. Price is starting to round off at a key level after sweeping a previous high, resulting in a bearish divergence. The price has quickly moved away from the EMAs and is yet to retest them as support.
Comment: Overall, we are showing good strength however this is not a time to go full bull and enter leveraged longs. We are still trading within a range. We may breakout and see some sharp upside, but we could easily dip and retest levels as support. It is important to be prepared for both.

Comments