Bitcoin Price Update: Thinking Short

As an update to the last price analysis that was put out, let's go ahead and take a short-term look at the price of Bitcoin:

RSI(14) is still climbing progressively and the price has re-corrected itself.

Once again, the overhead resistance at $4.2k is still pertinent for Bitcoin.

For the time being, things appear safe on the daily resolution. So, let’s go ahead and zoom into some smaller resolutions to see what the immediate term price action could be.

H4 Resolution (Bitcoin)

We can see that the RSI(14) is nearly in the overbought range for Bitcoin on the H4 resolution. However, this is a danger zone (to some extent) because the two previous times that the RSI(14) was in the overbought zone on the H4 resolution, there was a turndown.

Current Price Action

Today, there is a surge in the price of Bitcoin as it races slightly past the $4.2k resistance (on Bitfinex).

Let’s check the price on Coinbase:

The situation that we’re observing here on Bitcoin, though, could be one of a potential re-test of that $4.2k overhead resistance (that the price broke down south of), before it returns down to the lower levels of the $3k’s.

Conclusion

Currently, my idea on this is that there should be a long position on Bitcoin would be risky.

In my opinion, a short would be much better advised from where Bitcoin is currently.

Trade closed manually:

Trade closed! This idea went swimmingly.

Will post more updates in the future.