Short Term analysis and full trade below:
Over the last day price has been getting squeezed inside a small symmetrical triangle, that I believe will break to the upside, creating a correcting wave up to 9k. While it's possible this breaks to the downside and we continue lower without any substantial correction, this is the less likely scenario. There is bullish divergence on the 4-hour RSI and significant over sold conditions on the daily time frame. These are times when a retest of lost support is likely (orange horizontal support). It’s also possible we see a retest of the top of the channel. While this is likely to occur in the not so distant future no matter how low BTC goes, this idea is considering a shorter term time frame.
My current Position – long
- Position size 1BTC
- Open position @ 8k
- Close position @ 8900
- Profit - $1,000
Stop loss @ 7850
Let me know you guys think in the comments! Anyone taking this trade?
Over the last day price has been getting squeezed inside a small symmetrical triangle, that I believe will break to the upside, creating a correcting wave up to 9k. While it's possible this breaks to the downside and we continue lower without any substantial correction, this is the less likely scenario. There is bullish divergence on the 4-hour RSI and significant over sold conditions on the daily time frame. These are times when a retest of lost support is likely (orange horizontal support). It’s also possible we see a retest of the top of the channel. While this is likely to occur in the not so distant future no matter how low BTC goes, this idea is considering a shorter term time frame.
My current Position – long
- Position size 1BTC
- Open position @ 8k
- Close position @ 8900
- Profit - $1,000
Stop loss @ 7850
Let me know you guys think in the comments! Anyone taking this trade?