Current overhead resistances:
o Two order block rectangles from small bodied candle that led to a sharp move down.
o The moving average middle line of the bollinger band was only broken slightly before (see arrrow) during the current down trend. I expect it to contract more and provide a similar resistance now.
o I expect the downtrend line to be the biggest resistance now.
The RSI shows a hidden bearish divergence. While the price is making a lower high the RSI is making a higher high. That signals a continuation of the downtrend.
The DMI shows that the negative directional movement (orange line) is significantly bigger (27) than the positive directional movement (blue line = 11) and that this current downtrend is quite strong (red line = 43).
Given that numbers I expect the price to bounce from the downtrend line or the first overhead order block latest to then break the support of the current lowest low.
Disclaimer:
I'm a bloody beginner learning trading since September and I'm only publishing that to make use of the teddy bear effect. I expect to be more aware and conscious about what I'm doing by making it public and to also motivate me more to review my trades correctly. This is why it is obviously not financial advice.
Your feedback is welcome!
Please tell me your opinions as I'm looking forward to other views on my trade idea in the comments and please click thumbs up if you like it.
Comment:
The reason why I expect BTC to go a bit higher is because MACD shows a bit of positive momentum.
Comment:
BTW: No, I didn't trade that myself as I don't want to trade in a downtrend.