Bitcoin (BTC) saw a slight bullish impulse on Wednesday. More short opportunities will likely arise as a correction brews.
Situation on the H4 scale
After hovering around $25,250 on Tuesday, the queen of cryptos closed in the red yesterday. Our bearish scenario on the H1 scale of the February 20 analysis has been confirmed. Sure enough, the price moved a few points above the $25,200 hurdle on Tuesday, before pulling back 6%. However, after yesterday’s FOMC meeting minutes, bitcoin (BTC) is recovering almost 3%. All of these moves being inside the $25,250 and $23,350 range. With the current rise, it looks like more short opportunities will arise.
Indeed, we can see that the RSI follows a downward trend line on the daily scale. This means buyers are starting to capitulate. A correction seems imminent, especially since other well-known traders feel the same way. Bitcoin (BTC) is currently at +5.5% for this month of February. It could be that the price closes this month in the green, but it is obvious that the bullish phase is losing momentum. Thus, we remain bearish for the moment.
Sell bitcoin (BTC) above $25,200
In the short term, we can see two entry points that could be interesting for a short position. The first being an over zone in the middle of a marubozu candle. Then, we note the presence of several resistances below this zone. This means that stop orders waiting to be liquidated are above these small obstacles. Thus, if we sell bitcoin (BTC) inside this zone, the stop can be placed just above $25,200.
However, this entry point seems risky. Indeed, we should not neglect the presence of another resistance which has formed around $25,200. There are therefore orders to be liquidated above this level. One could then consider a short position in bitcoin (BTC) just above Tuesday’s high. The closest target is below yesterday’s low.
Entry point: $25,500
Stop: $26,200
Goal 1: $23,600
Goal 2: $23,132
Goal 3: $21,392
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