BTC potential short position. Mid-term. 1 hour chart.
Greetings.
Just after posting my first chart, a new divergence was spotted on the 1 hour timeframe. This time, the chart is live as of the time it is posted.
The divergence is shown on the chart.
It could be a setup for a short position. There might be a small price spike up to around the 9070 area, where a heavy supply has been established from previously.
The setup could be to enter a short position at around 8950 and add to it around 9070 if the price goes up a bit within a few hours.
Please consider having your stop-losses not too far from 9070, if the price breaks that price range with force. That would invalidate the divergence.
Potential targets are shown on the chart. You could also aim for a target around the 0.618 fib at 8564 if you want to let the trade run longer. Do consider reducing position size earlier.
Will update when we see the next hours unfold.
Please leave a comment if you have any suggestions.
Just after posting my first chart, a new divergence was spotted on the 1 hour timeframe. This time, the chart is live as of the time it is posted.
The divergence is shown on the chart.
It could be a setup for a short position. There might be a small price spike up to around the 9070 area, where a heavy supply has been established from previously.
The setup could be to enter a short position at around 8950 and add to it around 9070 if the price goes up a bit within a few hours.
Please consider having your stop-losses not too far from 9070, if the price breaks that price range with force. That would invalidate the divergence.
Potential targets are shown on the chart. You could also aim for a target around the 0.618 fib at 8564 if you want to let the trade run longer. Do consider reducing position size earlier.
Will update when we see the next hours unfold.
Please leave a comment if you have any suggestions.
Comment:
Price dipped below 8900 as expected. Do consider setting your stops to breakeven, as if the price pulls back up, a better entry may be possible.
Comment:
Update: Buyers pushed price back up to just below 8950, before another small retracement downwards. There might still be a push towards 9070 so i would advise again to keep stop-losses at breakeven. If the push happens i will reevalute divergence if it happens before 12 midnight UTC.
Trade closed: target reached:
Update: Trade closed. Targets reached. Left 20% of original position to run. Stops moved to target 1 price.
Resumé: Price made a small upturn before buyers lost the final momentum and price dropped very steeply in a short time, indicating that FOMO buyers became panic sellers.
- Target 1: Reached
- Target 2: Reached by the wick.
RSI divergence was very effective in this trade.
Resumé: Price made a small upturn before buyers lost the final momentum and price dropped very steeply in a short time, indicating that FOMO buyers became panic sellers.
- Target 1: Reached
- Target 2: Reached by the wick.
RSI divergence was very effective in this trade.
Comment:
