fghjkl

Area of confluence in sight.

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
Several things are pointing to a reversal if we hit the $6900 level:

Two powerful fib levels converge at an almost identical price; A . 618 retracement of the last major high on 9/4, and a 1.618 extension from the last minor high on 9/14 come within a few dollars of each other, right in the $6910-$6925 area.

My favorite oscillator, the stoch RSI , is entering the overbought range and I will be looking for a crossover in the coming days.

Keep in mind, other oscillators are more ambiguous at present.

It is also worth noting that there is a modestly visible high volume node in the $6900-$7000 area on the volume profile . This may also create some resistance, although only if the present rally turns out to be very weak.

Looking at volume , we had a modest but noticeable spike to get us from $6400 to $6700. This indicates some strength to me, but if the price does continue to climb without continuing strong volume I will be looking for a short entry.

My plan is to watch the volume closely if the price continues it's climb to $6900 and consider a short entry if significant resistance is met.

This is not the strongest feeling I've ever had about a reversal, but these several areas of confluence do point to an area of resistance, if not a proper reversal.

If a reversal takes place, I will probably be looking for a target in the $6100 range since this seems to be a major support level recently. A major breakdown below $6000 is of course a possibility.
Comment: This rally is looking pretty weak...

Volume has dropped off, shorts have dropped off, Stoch and Stoch RSI are overbought and crossing on the daily.

We are currently consolidating at the 0.5 retracement of the previous major high.

I am going short now because I don't think we will hit my previous price target (~$6900).

If we climb up to $6900 I will add to my position. If we climb past 7K then I will take a loss.

Now I'm looking for a drop at least to $6500, maybe further.
Comment: Closed position at $6396 this morning.

There appears to be significant potential for more downside but there also appears to be sturdy support at this level, waiting for a signal in either direction.
So, What do you think about next move ? We are now 64xx level...
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fghjkl oguzhan5069
@oguzhan5069, No strong feelings as of now, will post a public idea when I do.
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