Bearish BTC Finds Itself in a Parallel Descending Channel

Hi everyone, I'm back with another analysis on BTC/USD. After looking at the wedge earlier on, we will now look at a more conservative downtrend from the parallel channel.

The wedge from my previous idea got invalidated quickly. BTC isn't moving as fast downwards anymore as it did before. It seems the downward momentum has slowed a bit. However, we can still spot a parallel descending channel with a downwards direction. I will attempt one more trade set-up that is focused on this more bearish scenario.

There are two ways to trade this. You can either trade the price downwards with a short from $11,600, or trade the price upwards with an entry around the $11,250 area after a bounce on the bottom support area.

Take special note of the confluence between horizontal support and the support line of the channel. This is a strong indication of a powerful support.

For now, the TA shows that BTC will move downwards still for a while. A big move or some newly found momentum can change things again. Since it's the weekend, a short is relatively safe. But be careful when holding it overnight into the new week.

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- Trading Guru

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Disclaimer!
This post does not provide financial advice. It is for educational purposes only!