ENTRY PRICE: >47.8 k
TARGETS: 45.7k / 43.7k / 42k / 41k / 38.7k
STOPLOSS: 49.7k ( 3%)
Since the 20% correction of 7th September, BTC price found its support at 42.7k level and it is now already up 10%. After multiple times testing the support represented by the lower band of the channel, on 13th September price broke to the upside and it’s now approaching the upper level of the channel, our short entry price.
Historically in fact, whenever the price hit these levels, it immediately started a reversal pattern, therefore, being now the price close to the upper band I expect a pullback to test lower support levels.
Indicators are also pointing out to a possible correction in the next few days: is almost overbought (65), volumes are decreasing and looks ready to cross below the trendline. We expect the price to increase up to 48k-50k, for later undergoing an even more significant correction compared to the latter. September in fact has always been a particular month for crypto markets, with corrections up to 35%. This is why we expect to price to retrace at least up to 0,5 level of tool.
Never the less, divergence is 19 and prices are still above all moving averages, therefore as the trend still looks with price above 200EMA scalpers/ swing traders can still consider taking a long position up to when the appears. For short term/ traders in fact it can be profitable to open a long position before undergoing short, targeting lower support levels. More risk adverse traders could instead consider going short when the confirmations appear, so wait for the (green triangle) as well as for the confirmation of increasing volumes.
It can happen that after retracing from the upper level of the channel, the price finds
support on the moving average, our first target (middle blue line). If this is the case we would
personally consider taking profits and going long after the confirmations ( and ).
TRADE AT YOUR OWN RISK
NOT FINANCIAL ADVICE
Business News Governmental News Finance News