$BTC $XRP $ETH When the price approaches the 92,500 area again, it’s crucial to assess whether the support is holding or if there’s a deeper downtrend continuation. Here are some factors to consider when determining the possibility of a rebound or further decline:
1. Support at 92,500:
• Strong Support Zone: If the price approaches 92,500 again and starts showing signs of holding (for example, by forming higher lows, bullish candlestick patterns like pin bars or engulfing candles), it could be a sign of strong support at this level.
• RSI & MACD Analysis: Check if the RSI is not oversold (below 30) when the price tests this area, as this would indicate a potential reversal. The MACD should ideally start showing bullish momentum (crossing above the signal line).
• Volume Confirmation: If you see an increase in volume as the price reaches this support zone and starts bouncing, this would be a positive signal that demand is stepping in and the support is likely to hold.
2. Risk of Breakdown:
• Failure to Hold Support: If the price approaches 92,500 and fails to hold (i.e., it breaks below 92,300-92,500) with strong bearish volume, then it could indicate the possibility of a continuation of the downtrend towards 90,000 or lower levels.
• Bearish Signals: If RSI is still showing weakness (below 30) or the MACD remains negative, and there’s no sign of a bullish reversal at this level, the market may continue its bearish movement. The price could test lower support zones.
3. Strategy Adjustment:
• If the price bounces and shows strong support, consider entering long around 92,500, but make sure the conditions mentioned above align with the entry strategy.
• Set your stop loss just below 92,000, to give the price some room to move while limiting downside risk.
• If the price fails to hold at 92,500, consider waiting for a lower entry around the next support level (e.g., 90,000). It may be wise to short if a breakdown occurs and there’s sufficient confirmation of further downtrend momentum.
Key Points to Watch:
• Confirmation of Support: Look for a strong reversal signal at 92,500 before entering.
• Volume Surge: Volume should increase if there’s a reversal at this level.
• Breakdown Risk: If 92,500 breaks, prepare for a possible continuation of the downtrend.
Looking at the current price of 93,850 and the recent market analysis, entering a short position now seems risky. Here’s why:
Market Conditions:
1. Price Action: The price is currently approaching resistance zones above 93,500 to 94,000, which may act as a point for price rejection. However, it’s still above the key moving averages (EMA(7), EMA(21)), and there’s no clear rejection pattern at this price point yet.
2. RSI/ MACD: The RSI is around 50-55, which suggests indecision in the market, and MACD is showing some strength, indicating the market may be looking for an upward push before it turns down again.
3. Trend: Overall, the trend is still slightly bearish, but we have not yet seen clear signs of the resistance failing.
In summary, 92,500 could act as a strong support zone. If the price shows a bullish reversal at this level, it could present a good long entry with a stop loss below 92,000. If the support breaks, you should be cautious, possibly shifting to a short position with targets at 90,000.
Short Entry Evaluation:
• If you’re aiming to short at 93,850, it’s likely better to wait for confirmation, especially at higher resistance levels. Jumping in now could result in a price push up.
• Stop Loss: If you decide to short, you can set a stop loss above 94,000 (or slightly higher, around 94,200) to allow for some room for price fluctuations.
Conclusion:
I would recommend waiting for a clear sign of price rejection at the higher levels (like 94,000) or confirmation of a breakout failure. Taking a short at 93,850 now carries significant risk as the price is still relatively near current resistance without much evidence of a clear downward reversal.
