JRSone

BTCUSD Price Divergence (6H) - Potential Swing Trade?

Short
JRSone Updated   
BITSTAMP:BTCUSD   Bitcoin
Recent BTCUSD price action appears to be contradicting divergent (descending) volume, LMACD, and RSI peaks. RSI on the daily timeframe appears to be entering "overbought" territory, utilizing 80 as the higher cut-off. Coupled with recent fundamental price action: multiple rejections in the $13.6-14.0K USD range), overall waning volume, and approaching 6H moving average (10/20) crossover, the author believes BTCUSD to be presenting a moderate short opportunity. It is important to note that EMAs still indicate an overall uptrend, with the 100-period EMA at approximately $12262.60 USD on the 6H timeframe.

As always, execute proper bankroll management and place appropriate stop losses. Limited recent visible range volume makes specific stop-loss levels difficult to discern, but $14,000 USD should act as a strong psychological resistance point. Fibonacci retracement levels for potential take-profit locations include (10/30/2020, 14:50 PST at time of publication): 13,042.26, 12,533.6, and 11,711.23 USD. Please feel free to leave constructive chart analysis criticism and feedback below. Best of luck traders, stay safe out there.
Trade closed: target reached:
Trade closed at take-profit price of $13,261 USD--a 4.34% gain--(opened position at $13,863 USD). Closing out the majority of my equity, options, and crypto positions pending the upcoming US elections. At a fundamental level, a contested election could either bode very well for BTC, or could harm all asset classes across the board (think back to the calamity that ensued when Pandemic Panic v1.0 hit in March of 2020). Best of luck to all traders out there, and stay safe.
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