Today’s analysis – BTCUSD – price establishing a local range, currently putting in a probable retest of dynamic resistance,
Points to consider,
- Range Deviation
- Range low (support)
- Range high (resistance)
A range high deviation shows weakness in the immediate term, this allows us to have a bias on the smaller time frames.
The current is range low; price has been defended here as indicated by candle closes.
The Dynamic support has now turned into resistance, in confluence with the .618 Fibonacci. A retest confirmation here is very likely as this is a technical trade location.
The current is clearly declining, this is typically a sign usually followed by an influx that confirms a break.
Overall, in my opinion, BTCUSD is a valid short with defined risk; this is a short term idea so price action is to be used up discretion.
Hope this analysis helps!
Thank you for following my work!
“Dangers of watching every tick are twofold: overtrading and increased chances of prematurely liquidating good positions” – Jack Schwager