Today’s Analysis – BTCUSD – a short trade is valid at major resistance confluence
Points to consider, - Dynamic resistances converging - .618 Fibonacci objective ( bearish resistance of dynamic resistance) - Price Action in a Rising Wedge pattern - Stochastics divergence - Bull impulses (No follow through)
The .618 Fibonacci is the objective for this trade; price is likely to wick there for a liquidity grab as this is a clear trade location on the chart with key dynamic resistance confluence.
Price Action is currently trading in a rising wedge which has a greater probability of breaking down.
The stochastics has a valid bearish divergence, which has technically played out; this shows weakness in the market.
Furthermore all bull impulses have been sold into, another impulse above local resistance is likely to be a wick into the .618 Fibonacci area.
Overall, in my opinion, a short trade is valid at the .618 Fibonacci. The immediate trend is bearish; any rallies are to be sold into until the recent high is taken out at around $9796.5
What are your thoughts?
Thank you for following my work!
And remember,
“If you don’t respect risk, eventually they’ll carry you out.” – Larry Hite
@Asanato would be quite probable to put in a back test of the POC on your chart before continuing further down, $8700 is the immediate target imo :)
BoilderRoomColdCaller
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Great analysis, I have the same short target. If it really forms an A-B-C correction, I expect it to go to 8300 ish.
AzizKhanZamani
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@BoilderRoomColdCaller yeah I expect a correction to, there is a major weekly support at around $8700 that BTC is likely to test since is broke out of the wedge
AminHa4
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Thanks for sharing.
Im agree with your chart ...
Every time we see a movement, price with back and test 618 again ...
Check this out
AzizKhanZamani
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@AminHa4 the .618 is a pivot point for most of BTC’s price action, very strong with other technical confluences
AminHa4
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@AzizKhanZamani, and also it could be new resistance and confirmation for new channel....
AzizKhanZamani
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@AminHa4 true!, it’ll solidify the resistance which is better because it helps set clear objectives when trading it