For those who are currently in a Short position.
Based on the BITCOIN price chart at noon on January 2, 2025, as shown below, I will provide some analysis of key factors to support your decision if you are in a Short position.
1. Price Trend:
• The price is rising, surpassing the EMA (7, 25, 99) lines and holding above strong support levels. This indicates that the uptrend is prevailing.
• The RSI (Relative Strength Index) is currently above 70, signaling that the market is in an overbought state, and there may be a short-term correction.
2. Trading Volume:
• Trading volume has significantly increased during bullish candles, reinforcing the uptrend.
3. Resistance and Support Levels:
• The recent high price is 96,250 USD, acting as resistance.
• If the price breaks this resistance, the uptrend may continue. If not, the price may correct to support levels around 94,755 USD or lower.
Suggestion:
If holding a short position: (priority)
• Consider cutting losses if the price clearly rises above the 96,250 USD level.
• Set a tight stop-loss to limit risk, as the current trend does not support the short position.
Close Position: Close the short position right now if the gap is not too thick or if you are not confident about the potential for a sharp downward correction in the near future.
Need to monitor trading volume and important price levels before making a decision. The crypto market is highly volatile, so manage your capital carefully!