$BTC Based on the most recent chart, the market is showing signs of continued downward pressure. Here is the analysis and suggested strategy:
Current Market Analysis:
1. RSI (14): The RSI is at 37.599, which is close to the oversold level, indicating potential for a short-term reversal. However, it is still not in extreme oversold conditions.
2. MACD: The MACD is -4.315, indicating a strong bearish momentum, and it remains below the signal line. The downward movement is expected to continue unless the market shows signs of reversal.
3. Volume: The volume is 7,292.81, significantly higher than previous levels, suggesting that this downward movement is backed by strong selling pressure.
4. EMA Levels: The price is below the EMA (7) and EMA (21), confirming that the short-term trend is bearish. The EMA (99) is also acting as dynamic resistance.
5. Stochastic RSI: The Stochastic RSI is in a higher range at 81.951, which is approaching overbought conditions. This suggests that if the price shows any upward movement, it might be short-lived.
Strategy Adjustments:
Short Strategy:
• Entry: Enter a short position if the price fails to break the immediate resistance at 100,800 and starts moving downward again.
• Stop Loss: Place the stop loss around 100,900, just above the recent highs, to protect from sudden upward corrections.
• Target: Set your first target at 100,200, and the second target could be 99,800. You can adjust the second target if the downtrend continues.
Long Strategy (Risky):
• Entry: Consider waiting for a clear price break above 100,800 to confirm bullish momentum before entering a long position.
• Stop Loss: The stop loss should be placed below 100,400 to ensure you limit any downside risk.
• Target: For the long, target 101,500 for the first level and potentially 102,000 if the market shows strong upward momentum.
Conclusion:
• The market is currently showing bearish momentum, and shorting seems like the safer strategy.
• If price starts showing signs of recovery, a break above 100,800 could signal a potential long opportunity.
• Continue to monitor price action closely and make adjustments based on market behavior, especially if RSI reaches extreme levels or MACD shows signs of reversal.