I invest in Bitcoin, and don’t usually trade. However, I can see a pretty bearish setup unfolding.
Trade set up:
Entry price: 85341.66 (black line in 4H)
Stop loss: 87,962 (red line in 4H chart, just above the previous week high)
Target 1 - 80.971 (green line, previous week low and Fib 0.5 level in Daily chart)
Target 2 - 78, 253 (green line in 4H chart, previous month low, approx 50% encroachment zone of fair value gap in daily chart .
Reasons:
Weekly:
MACD is still in the bull territory but MACD lines are clearly moving to the downside.
The price has retraced to 50% of the massively bearish red candle of(March 3rd weekly candle) and now resuming to move to the downside.
Daily:
RSI and MACD are both in the bear territory and it looks like they are rolling back to the downside in the bear territory, which is pretty bearish.
The price has dropped and closed below the ascending trend line.
4H:
The price has been travelling inside the ascending parallel channel, but it is dropped and closed below the bottom line.
Both MACD and RSI are deep in the bear territory.
Trade set up:
Entry price: 85341.66 (black line in 4H)
Stop loss: 87,962 (red line in 4H chart, just above the previous week high)
Target 1 - 80.971 (green line, previous week low and Fib 0.5 level in Daily chart)
Target 2 - 78, 253 (green line in 4H chart, previous month low, approx 50% encroachment zone of fair value gap in daily chart .
Reasons:
Weekly:
MACD is still in the bull territory but MACD lines are clearly moving to the downside.
The price has retraced to 50% of the massively bearish red candle of(March 3rd weekly candle) and now resuming to move to the downside.
Daily:
RSI and MACD are both in the bear territory and it looks like they are rolling back to the downside in the bear territory, which is pretty bearish.
The price has dropped and closed below the ascending trend line.
4H:
The price has been travelling inside the ascending parallel channel, but it is dropped and closed below the bottom line.
Both MACD and RSI are deep in the bear territory.
Trade closed: target reached
Target 1 and 2 reached
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.