Always very risky shorting BTC of course, but what we are seeing here are many combining factors:
- We have a clear bearish head and shoulders pattern forming
- We have a bearish ascending wedge
- We are at the top of the main channel on 1 day view
- We have major divergence on the RSI with latest 3 peaks posting higher highs in price but lower RSI readings
• We have completed a 3 drive attempt at going higher, and now posted a lower high
- We also have divergence on OBV (use 5 minute chart for an accurate reading)
If we break through the neckline at around $8090 with good sell volume, we should look for a target of around $7730 which is the bottom of the upper channel of the main trend, and is also the height of the head and shoulders pattern.
Happy trading (for educational information only, not trading advice)
SL $8320
SELL: $8090
Target: $7730
- We have a clear bearish head and shoulders pattern forming
- We have a bearish ascending wedge
- We are at the top of the main channel on 1 day view
- We have major divergence on the RSI with latest 3 peaks posting higher highs in price but lower RSI readings
• We have completed a 3 drive attempt at going higher, and now posted a lower high
- We also have divergence on OBV (use 5 minute chart for an accurate reading)
If we break through the neckline at around $8090 with good sell volume, we should look for a target of around $7730 which is the bottom of the upper channel of the main trend, and is also the height of the head and shoulders pattern.
Happy trading (for educational information only, not trading advice)
SL $8320
SELL: $8090
Target: $7730