Looking for another opportunity to short Bitcoin (BTC/USD) this week?
I’m Gucho!
BTC/USD is testing a dynamic resistance area that could lead to bearish momentum for the OG cryptocurrency.
Bitcoin (BTC/USD) 4 hours Planned by TV
Just over a week ago, we talked about BTC/USD hitting a descending channel pattern resistance.
Fast forward to today and the pair has retested the May lows…but then bounced back.
Is this another opportunity to sell bitcoin?
BTC/USD is having trouble finding sustained demand above the $27,000 mark, which comes as no surprise as the 100 and 200 SMAs are also around a psychological level.
In fact, $27k is not far from the trend line that held last week as resistance!
Add to that the (almost) overbought stochastic signal and you have a recipe for a potential bearish swing.
BTC/USD sellers who are confident that the pair will make fresh monthly lows can sell at current levels and place stops above the $28,500 swing high.
If you think that a successful third defense of $26,000 is a sign of a bottom, you can also consider buying BTC/USD instead.
Just make sure to do it above the resistance area we identified so you have additional confirmation of an upward breakout!
This content is for informational purposes only and does not constitute investment advice. Trading in any financial market involves risks. Please read our Risk Disclosure Statement to ensure you understand the risks involved.