BTCUSD Dynamic Resistance|Range High|.618 Fib|Declining Volume
Evening Traders,
Today’s analysis – BTCUSD – price establishing a local range, currently putting in a probable bearish retest of dynamic resistance,
Points to consider,
- Range Deviation
- Range low (support)
- Range high (resistance)
- Declining volume
A range high deviation shows weakness in the immediate term, this allows us to have a bearish bias on the smaller time frames.
The current demand zone 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 bearish retest confirmation here is very likely as this is a technical trade location.
The current volume profile is clearly declining, this is typically a bearish 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!
And remember,
“Dangers of watching every tick are twofold: overtrading and increased chances of prematurely liquidating good positions” – Jack Schwager
Today’s analysis – BTCUSD – price establishing a local range, currently putting in a probable bearish retest of dynamic resistance,
Points to consider,
- Range Deviation
- Range low (support)
- Range high (resistance)
- Declining volume
A range high deviation shows weakness in the immediate term, this allows us to have a bearish bias on the smaller time frames.
The current demand zone 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 bearish retest confirmation here is very likely as this is a technical trade location.
The current volume profile is clearly declining, this is typically a bearish 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!
And remember,
“Dangers of watching every tick are twofold: overtrading and increased chances of prematurely liquidating good positions” – Jack Schwager