When entering a trade, we should be looking for confluence, that is to say multiple reasons to strengthen our decision making. Now I can talk about moving averages, and which key MAs we will come up against, or also , or the , and these all add more weight to the argument to short at the point shown in my chart, but what I want to focus on to keep things simple is The Golden Ratio.
The golden ratio (0.618) is called just that because of the significance it holds. If the price closes above or below the golden ratio, will frequently dictate the direction the market is going. With 3 out of the 4 rallies this year not closing above the 0.618 on the daily, it would indicate that the current August rally (continuing into September) will also struggle to close above the 0.618. This makes it a very good place to short BTC 0.79% and profit when the price of BTC falls.
What do you guys think?