Hello traders,
I've been mentioning in my last few posts how the daily momentum oscillator has been overbought and going sideways in that region for 9+ days. Well, yesterday we confirmed a bearish engulfing candle on the daily timeframe and the uptrend from $29,700 has broken and for now $39,000 seems to have some buyers. Why? Most likely because after a big uptrend or downtrend has been broken there's a high chance of price retesting the broken trend-line to either confirm the current price action or produce a fake-out. In this situation, I feel that we will head higher short term to confuse panic sellers at this level and also liquidate them to provide liquidity for the following move down.
$41,111 - $42,222 will be where my short orders get filled, and will watch price action to see if we continue down after like I'm thinking.
From there you can expect a bearish technical analysis out of me with the support levels BTC will likely retest/visit.
$33,555 seems like a good spot in terms of market structure and I'm sure high leverage longs get liquidated on the way down.
Mind you, we can always keep dumping and it's possible however I'd like to see this scenario play out and confirm the breakdown/rejection.
Stay safe and avoid high leverage (1-5x no higher)
👍
I've been mentioning in my last few posts how the daily momentum oscillator has been overbought and going sideways in that region for 9+ days. Well, yesterday we confirmed a bearish engulfing candle on the daily timeframe and the uptrend from $29,700 has broken and for now $39,000 seems to have some buyers. Why? Most likely because after a big uptrend or downtrend has been broken there's a high chance of price retesting the broken trend-line to either confirm the current price action or produce a fake-out. In this situation, I feel that we will head higher short term to confuse panic sellers at this level and also liquidate them to provide liquidity for the following move down.
$41,111 - $42,222 will be where my short orders get filled, and will watch price action to see if we continue down after like I'm thinking.
From there you can expect a bearish technical analysis out of me with the support levels BTC will likely retest/visit.
$33,555 seems like a good spot in terms of market structure and I'm sure high leverage longs get liquidated on the way down.
Mind you, we can always keep dumping and it's possible however I'd like to see this scenario play out and confirm the breakdown/rejection.
Stay safe and avoid high leverage (1-5x no higher)
👍