EARLY BIRD BITCOIN SHORT ENTRY
Updated
Trade Position and Rationale:
I am currently holding a short position (entrey at $68,600) based on the rejection at the $70,000 resistance level. This level has proven to be a formidable barrier, suggesting strong selling pressure. The additional indicators reinforce this bearish sentiment.
Key Levels to Watch:
Primarly, as the VRVP shows, we are having the early bird rejection candly from the volume profile POC. If the trend reverses with a rejection here I would not expect anything less than...
Immediate Support Level (White Line):
$60,883.0: This is the immediate support level, marked by the white dotted line. A strong reaction at this level is crucial. A bounce here could indicate a potential double bottom, which might signal a reversal. However, a break below this level would confirm the bearish trend and open up lower targets.
Potential Targets if Support Breaks (Red Dashed Lines):
First Target: $51,740.5: This level aligns with a high-volume node on the volume profile and represents a significant previous support level. The confluence of these factors makes it a strong target if the $60,883.0 support breaks. Consolidation or a temporary halt in the decline is likely around this area.
Second Target: $42,862.2: This major support level from historical price action is reinforced by another high-volume node. Reaching this level could present a substantial buying opportunity for long-term investors, as it is closer to previous accumulation zones.
Volume Profile Analysis:
The volume profile shows the distribution of trading activity at various price levels. The prominent high-volume nodes at $51,740.5 and $42,862.2 suggest these levels are critical points of interest. These nodes often act as strong support and resistance areas due to the significant trading activity and liquidity they represent.
RSI Analysis:
The Relative Strength Index (RSI) is currently at 44.08, below the neutral 50 level, indicating bearish momentum. The RSI has been trending downwards, reflecting increasing selling pressure. Watch for the RSI approaching the 30 level, which could indicate an oversold condition and potential for a short-term bounce.
MACD Analysis:
The MACD is currently showing bearish signals, with the MACD line (blue) below the signal line (orange) and both lines trending downwards. The histogram is also in negative territory, indicating increasing bearish momentum. This reinforces the short position and suggests that further downside is likely.
Additional Insights:
Bearish Divergence: The RSI and MACD both show bearish divergence, supporting the expectation of further declines. This divergence adds confidence to the short position.
Risk Management: For those in short positions, setting a stop-loss slightly above the $68,000 resistance level is prudent. This strategy limits potential losses if the market unexpectedly reverses. Similarly, long-term investors looking to buy should consider setting buy orders around the $51,740.5 and $42,862.2 levels with appropriate stop-losses to manage risk.
Market Sentiment Indicators: The bearish sentiment in the RSI and MACD, combined with the price action and volume profile, suggests that market participants are currently more inclined to sell than buy. This could lead to further declines in the near term.
Conclusion:
In summary, Bitcoin's price action and additional indicators suggest a bearish trend with potential for further declines. The immediate support level to watch is $60,883.0. If this level breaks, the next targets are $51,740.5 and $42,862.2. The volume profile, RSI, and MACD analysis support these levels as significant areas of interest. Traders should be prepared for volatility and manage their positions accordingly.
Stay vigilant, use proper risk management, and adapt to market changes. Happy trading!
I am currently holding a short position (entrey at $68,600) based on the rejection at the $70,000 resistance level. This level has proven to be a formidable barrier, suggesting strong selling pressure. The additional indicators reinforce this bearish sentiment.
Key Levels to Watch:
Primarly, as the VRVP shows, we are having the early bird rejection candly from the volume profile POC. If the trend reverses with a rejection here I would not expect anything less than...
Immediate Support Level (White Line):
$60,883.0: This is the immediate support level, marked by the white dotted line. A strong reaction at this level is crucial. A bounce here could indicate a potential double bottom, which might signal a reversal. However, a break below this level would confirm the bearish trend and open up lower targets.
Potential Targets if Support Breaks (Red Dashed Lines):
First Target: $51,740.5: This level aligns with a high-volume node on the volume profile and represents a significant previous support level. The confluence of these factors makes it a strong target if the $60,883.0 support breaks. Consolidation or a temporary halt in the decline is likely around this area.
Second Target: $42,862.2: This major support level from historical price action is reinforced by another high-volume node. Reaching this level could present a substantial buying opportunity for long-term investors, as it is closer to previous accumulation zones.
Volume Profile Analysis:
The volume profile shows the distribution of trading activity at various price levels. The prominent high-volume nodes at $51,740.5 and $42,862.2 suggest these levels are critical points of interest. These nodes often act as strong support and resistance areas due to the significant trading activity and liquidity they represent.
RSI Analysis:
The Relative Strength Index (RSI) is currently at 44.08, below the neutral 50 level, indicating bearish momentum. The RSI has been trending downwards, reflecting increasing selling pressure. Watch for the RSI approaching the 30 level, which could indicate an oversold condition and potential for a short-term bounce.
MACD Analysis:
The MACD is currently showing bearish signals, with the MACD line (blue) below the signal line (orange) and both lines trending downwards. The histogram is also in negative territory, indicating increasing bearish momentum. This reinforces the short position and suggests that further downside is likely.
Additional Insights:
Bearish Divergence: The RSI and MACD both show bearish divergence, supporting the expectation of further declines. This divergence adds confidence to the short position.
Risk Management: For those in short positions, setting a stop-loss slightly above the $68,000 resistance level is prudent. This strategy limits potential losses if the market unexpectedly reverses. Similarly, long-term investors looking to buy should consider setting buy orders around the $51,740.5 and $42,862.2 levels with appropriate stop-losses to manage risk.
Market Sentiment Indicators: The bearish sentiment in the RSI and MACD, combined with the price action and volume profile, suggests that market participants are currently more inclined to sell than buy. This could lead to further declines in the near term.
Conclusion:
In summary, Bitcoin's price action and additional indicators suggest a bearish trend with potential for further declines. The immediate support level to watch is $60,883.0. If this level breaks, the next targets are $51,740.5 and $42,862.2. The volume profile, RSI, and MACD analysis support these levels as significant areas of interest. Traders should be prepared for volatility and manage their positions accordingly.
Stay vigilant, use proper risk management, and adapt to market changes. Happy trading!
Note
Woke up this morning to see that the bearish trend is getting stringer by the hour. Will keep updated in case any macro events can cause an impact on the trend, if not, I would expect Bitcoin to play as mentioned above.Note
The downtrend is at the moment confirmed with the break of the 65k level. If we manage two have a close below it, expect original idea to play outNote
We are about to hit hit first target. Plan is in motion effectively.Note
We got a perfect entry, and we are getting perfect profits :)
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