Following my previous post, I can now suggest a more accurate entry point where we may consider taking a short position.
Not gonna lie, this is a rather complicated situation we find ourselves in...Personally, all of this seems like a huge retracement wanting to close in very soon, and we are approaching a crucial resistance area which should be taken into accountability. 7900-8000 level seems reasonable to me to open shorts, simply due to the fact that it outlines with our 0.618 Fib retracement level, and also some previous major support/resistance levels looking back historically. BUT, we also have a rather strong resistance being presented around 8250 level. Looking at some other exchanges like the CME for example, this resistance seems to be more crucial there rather than the one outlined on our BitMEX exchange. Due to this reason in particular, I have placed a rather high SL in order to give the market more space to play out between these two resistance levels. Hopefully we manage to see a rejection off the 7900 and follow a bearish impulse wave to lock in profits. However, these are very volatile times right now and anything can happen.
That's my 2 cents on the case. Hopefully it made sense, and leave a like if you agree or found this to be beneficial in any way. View my previous post for more fundamental analysis of the scenario here, but other than that, my technicals remain bearish.
This is NOT a financial advice, trade at your own risk.
Not gonna lie, this is a rather complicated situation we find ourselves in...Personally, all of this seems like a huge retracement wanting to close in very soon, and we are approaching a crucial resistance area which should be taken into accountability. 7900-8000 level seems reasonable to me to open shorts, simply due to the fact that it outlines with our 0.618 Fib retracement level, and also some previous major support/resistance levels looking back historically. BUT, we also have a rather strong resistance being presented around 8250 level. Looking at some other exchanges like the CME for example, this resistance seems to be more crucial there rather than the one outlined on our BitMEX exchange. Due to this reason in particular, I have placed a rather high SL in order to give the market more space to play out between these two resistance levels. Hopefully we manage to see a rejection off the 7900 and follow a bearish impulse wave to lock in profits. However, these are very volatile times right now and anything can happen.
That's my 2 cents on the case. Hopefully it made sense, and leave a like if you agree or found this to be beneficial in any way. View my previous post for more fundamental analysis of the scenario here, but other than that, my technicals remain bearish.
This is NOT a financial advice, trade at your own risk.