Greetings.
Looking at the BTC price action after a pretty steep drop during the night. Congratulations to everyone who had a short position.
An RSI divergence is forming on the 15 minute chart indicating seller momentum slowing. If buyers show strength, that could be a possible entry for a long position.
Potential targets are shown, and they are somewhat conservative, since the timeframe of this potential setup is quite short.
There is a possibility, that BTC might retrace further to the area where a previous demand has been established. If that happens i will re-evaluate the divergence, because momentum would have to be considered again.
Will update once price movement unfolds.
Looking at the BTC price action after a pretty steep drop during the night. Congratulations to everyone who had a short position.
An RSI divergence is forming on the 15 minute chart indicating seller momentum slowing. If buyers show strength, that could be a possible entry for a long position.
Potential targets are shown, and they are somewhat conservative, since the timeframe of this potential setup is quite short.
There is a possibility, that BTC might retrace further to the area where a previous demand has been established. If that happens i will re-evaluate the divergence, because momentum would have to be considered again.
Will update once price movement unfolds.
Comment:
Sorry about the target arrows overlapping the price. The chart looks a bit different when posted, so i will keep that in mind going forward and adjust accordingly.
Comment:
Due to selling momentum decreasing, buyer momentum increased pretty fast and target 1 got reached within a few minutes.
Comment:
After reaching target 1 sellers gained momentum. Target 2 almost got reached by the wick. Currently price has retraced to around the price when the chart was first posted. This is the reason i set some pretty conservative targets, but its all fine, since there was a possibility to take some profits at target 1 and set stop-losses at breakeven depending on trading strategy. Sellers are pushing the price pretty hard and we might see 8400 breached soon to the area where there is heavy demand. Will update if that scenario plays out. There is a small divergence forming on the 1-hour chart. Target 2 could still be valid, but its too early to tell.
Trade closed: target reached:
Update:
- Target 1 reached
- Target 2 reached
Resumé: So target 1 got reached very shortly after the first chart was posted. After that price made a small retracement toward the zone with heavy demand. So depending on trading strategy, a trader would have had 3 general options.
1. Take some profits at target 1 and set stops to breakeven.
2. Take some profits at target 1 and let trade run until target 2.
3. Take some profits at target 1 and add to position, when it dropped toward the heavy demand zone.
When price retraced below 8400 the divergence became more clear on the 1 hour timeframe, which is shown in the last update.
And a few hours later the selling momentum slowed, and we got a small rally, that pushed the price above target 2 for a brief moment - that would have been an ideal target to take profits and maybe let a small portion of the position run.
Hope you liked this idea.
- Target 1 reached
- Target 2 reached
Resumé: So target 1 got reached very shortly after the first chart was posted. After that price made a small retracement toward the zone with heavy demand. So depending on trading strategy, a trader would have had 3 general options.
1. Take some profits at target 1 and set stops to breakeven.
2. Take some profits at target 1 and let trade run until target 2.
3. Take some profits at target 1 and add to position, when it dropped toward the heavy demand zone.
When price retraced below 8400 the divergence became more clear on the 1 hour timeframe, which is shown in the last update.
And a few hours later the selling momentum slowed, and we got a small rally, that pushed the price above target 2 for a brief moment - that would have been an ideal target to take profits and maybe let a small portion of the position run.
Hope you liked this idea.