Dear crypto friends,
As Bitcoin still haven't broken 7600-7800 resistance area with a confirmation, signs of weakness have arisen. On 1H chart we see clear bearish divergence as price making higher heights ans oscillators making lower lows.
Price is going up while oscillators pointing down - sign of weakness.
BTC have made already two ABC corrections after two impulse waves to the upside. So it might repeat the same pattern again with a 0.618-0.786 Fibonacci correction to the 7000-7150 support zone.
We might consider this as a good scalping opportunity. Shorting from under strong resistance with a close stop loss always reduces the risk of the whole trading position. But do not forget that trading against the trend increases the risk. Which in turn leads to the conclusion that your trading strategy should be balanced and thoughtful.
So in what direction is the trend? Local trend is bearish with bullish signs emerging. This mean that Bitcoin can go lower. BTC loves making V-bottom FU-moves. I tried to explain my global point of view in previous idea:
What will happen next the price will tell.
This idea is not a financial advise, but you probably know that already ;)
As Bitcoin still haven't broken 7600-7800 resistance area with a confirmation, signs of weakness have arisen. On 1H chart we see clear bearish divergence as price making higher heights ans oscillators making lower lows.
BTC have made already two ABC corrections after two impulse waves to the upside. So it might repeat the same pattern again with a 0.618-0.786 Fibonacci correction to the 7000-7150 support zone.
We might consider this as a good scalping opportunity. Shorting from under strong resistance with a close stop loss always reduces the risk of the whole trading position. But do not forget that trading against the trend increases the risk. Which in turn leads to the conclusion that your trading strategy should be balanced and thoughtful.
So in what direction is the trend? Local trend is bearish with bullish signs emerging. This mean that Bitcoin can go lower. BTC loves making V-bottom FU-moves. I tried to explain my global point of view in previous idea:
What will happen next the price will tell.
This idea is not a financial advise, but you probably know that already ;)
Trade closed: stop reached