SHORT BTC: September pullback is knocking at the door for BINANCE:BTCUSDT by vf_investment

The live Bitcoin price today is $47.484,57 USD, -0,10% in the last 24h, with a 24-hour trading volume of $33.399.961.250 USD.

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 Keltner 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: RSI is almost overbought (65), volumes are decreasing and MACD 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 bearish 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 Fibonacci retracement tool.

Never the less, RSI divergence is 19 and prices are still above all moving averages, therefore as the trend still looks bullish with price above 200EMA scalpers/ swing traders can still consider taking a long position up to when the bearish fractal appears. For short term/ futures 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 bearish fractal (green triangle) as well as for the confirmation of increasing volumes.

A bearish fractal occurs when there is a high point with two lower high bars/candles on each side

of it. The indicator isolates potential turning points on a price chart and signals the price could move lower.

It can happen that after retracing from the upper level of the Keltner 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 ( bullish fractal and RSI ).




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