Bitcoin Short Trade Idea #2
My premise is that Bitcoin is still in a downtrend.
I will reconsider my opinion if Bitcoin gets above the 50D EMA and holds it as support. If Bitcoin gets above 28.5K and holds that level, I will drop my short bias.
In a previous Bitcoin idea, I suggested a short trade at 27K based on the confluence of the following:
1. The 200D EMA, at 27K, may act as resistance.
2. The 50D EMA, at 27K, may act as resistance.
3. Supply Zone (1H) between 27K - 27.3K
4. Trendline resistance at 27K.
4. SL is at the 50% of the wick at 27.43K
that idea is still valid. However, in the previous idea, and in this one, I urge you to look for signs of rejection before entering a short trade.
This Idea is in case Bitcoin gets above the 50D EMA and continues higher.
The higher Bitcoin goes the stronger the resistance:
The following levels may be the target of this short squeeze:
1. 27, 484: 50% of a daily wick (August 31st).
2. 27,930: 50% of a daily wick (August 29th).
3. 28, 500: Long-standing S/R level.
Also, in a previous TV Idea I (linked) I referred to a Bitcoin fractal from June 2022. The common theme between these fractals is that in both periods’ bitcoin is in a downtrend and extremely oversold.
The June fractal is playing out very nicely. It fits with the previous short squeeze (August 29th) and with the 25K support level.
If the market continues to conform to this blueprint, we can expect another Short squeeze, equal to, or higher than 28.2.
IMO, the 28.5K level fits the bill. If Bitcoin gets above 27K and holds support above the 50D EMA, this is where I will be looking to short.
I do not intend to put a limit order. I will wait for a rejection. This rejection, assuming it happens, could be higher or lower than 28.5K. We’ll have to wait and see.
Trade Idea:
Entry: 27,930 (50% of the wick).
SL: 28, 500 (S/R level)
Target: 25.3K
TP: 25.9K, 25.3K
R: R: 1:3.5 to first TP
I will reconsider my opinion if Bitcoin gets above the 50D EMA and holds it as support. If Bitcoin gets above 28.5K and holds that level, I will drop my short bias.
In a previous Bitcoin idea, I suggested a short trade at 27K based on the confluence of the following:
1. The 200D EMA, at 27K, may act as resistance.
2. The 50D EMA, at 27K, may act as resistance.
3. Supply Zone (1H) between 27K - 27.3K
4. Trendline resistance at 27K.
4. SL is at the 50% of the wick at 27.43K
that idea is still valid. However, in the previous idea, and in this one, I urge you to look for signs of rejection before entering a short trade.
This Idea is in case Bitcoin gets above the 50D EMA and continues higher.
The higher Bitcoin goes the stronger the resistance:
The following levels may be the target of this short squeeze:
1. 27, 484: 50% of a daily wick (August 31st).
2. 27,930: 50% of a daily wick (August 29th).
3. 28, 500: Long-standing S/R level.
Also, in a previous TV Idea I (linked) I referred to a Bitcoin fractal from June 2022. The common theme between these fractals is that in both periods’ bitcoin is in a downtrend and extremely oversold.
The June fractal is playing out very nicely. It fits with the previous short squeeze (August 29th) and with the 25K support level.
If the market continues to conform to this blueprint, we can expect another Short squeeze, equal to, or higher than 28.2.
IMO, the 28.5K level fits the bill. If Bitcoin gets above 27K and holds support above the 50D EMA, this is where I will be looking to short.
I do not intend to put a limit order. I will wait for a rejection. This rejection, assuming it happens, could be higher or lower than 28.5K. We’ll have to wait and see.
Trade Idea:
Entry: 27,930 (50% of the wick).
SL: 28, 500 (S/R level)
Target: 25.3K
TP: 25.9K, 25.3K
R: R: 1:3.5 to first TP
