Bitcoin Short Term Outlook With A Trade Possibility
The 200 period MA is shown in yellow, is the current ceiling for price movement on the upside.
The 21 period MA drawn in red forms the floor which the BTC price must hold.
Currently, the Fibonacci 0.50 level is critical it is drawn in green and the price is at $9159.
This Fibonacci is drawn on the last major upward price move, and the 50% level on any Fibonacci is a critical point at which it is determined whether the price is going to be going up or down. The Fibonacci indicates that we are at a point of decision in this moment and therefore the direction of trading is undecided.
The declining daily volume is also indicative of caution on the part of the market at this point. This makes sense in the context of this chart, the traders are looking for direction from the market.
Indicators
Stoch RSI Oversold
RSI Positive
MACD Neutral with Caution
Possible but risky, short term trade. This trade should only be considered if you have a high risk tolerance and you are able to monitor it closely. It must also have a tight stop loss set.
The chart currently indicates a potential price move from $9159 up to $10200 which is the 200 period MA. I would certainly take profits prior to reaching this level.
Sent your stop loss at $8900 or according to your risk tolerance.
Longer Term
We are currently above the 50 period MA drawn in gray on the chart. If it is breached to the downward then look for a sharp decline. This decline would probably extend onto the dotted turquoise line which is the old bottom of the larger uptrend probably somewhere in the $7600 range.
Should we close a one-day candle above the 200 day MA then we are back into a short-term bull run.
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All statements and expressions I offer are my opinions, and not meant as investment advice or solicitation. Information provided is not personal investment advice. Seek guidance from a professional investment advisor before trading or investing. Trading cryptocurrencies can be a potentially profitable opportunity for investors. You should carefully consider your investment objectives, level of experience, and risk appetite. Most importantly, do not invest money you cannot afford to lose. I am not a registered investment advisor.
Wishing you success,
Isaac
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