BTCUSD Long|Dynamic Support|Local Resistance|Apex|Low volume

12 thg 7, 2020

Evening Traders,

Today’s trade analysis – BTCUSD traveling into its apex, a long trade is valid upon breaking local resistance.

Points to consider,
- Macro trend bearish
- Dynamic support respected
- Local resistance converging
- RSI respecting trend (overlying resistance)
- Volume below average
- Valid long with defined risk

BTCUSD’s macro trend is bearish with consecutive lower highs; this gives us a bearish bias on the overall market.

This long trend is based solely on interim level and price action.

The dynamic support has been respected enough to solidify its significance, price breaking below will negate the trade.

Local resistance is converging with the dynamic support; this places the market in an apex where a break will be imminent.

The RSI is respecting its trend line with overlying resistance, a break will coincide with price action.

The volume is trading below average; this is an indication of an influx as price is at key interim levels.

Overall, in my opinion, a long is ONLY valid if price breaks above resistance, price action must show strength. The formation resembles the psychology of a probable ascending triangle which only validates breaking its resistance.

A break below the key dynamic support will negate the trade set up with the immediate target then being daily support.

What are your thoughts?

Thank you for following my work!

And remember,

“Take your profits or someone else will take them for you.” – J.J. Evans