BTC Short Idea - Target $84k - $87k
2025-01-07
Category: None

Here I am trying this short idea again. Reason for this trade is summarized below.

1. Let's check out the break out above the white descending line. This breakout has been exhausted and reached it's target. By doing a trend-based FIB extension we can see that the final target for the break out was around $101,300, but the trend reached a maximum high of $102,471.

2. This break up to $102,471 is facing resistance right now because of the order block on 8H time frame. 

so 2 reasons why it stopped here 
a. order block
b. reached target for the break out to the up side.

3. third, the price action of bitcoin right now is sitting in the middle of the resistance channel in blue for the upward sloping channel. Usually these types of channels break to the downside. 

I think by the quick and sharp break out to the upside today, it completed the third time of testing the break down from the channel. The first break down happened on Dec 24 and it quickly retracted. Today was the 3rd time the retest happen on the resistance line (bottom line) of the upward sloping channel (in blue). 

If the resistance break to the upside, this whole trade idea will be invalidated. But too many confluences are lining up that this will hold and the down trend is going to happen next targeting at the minimum  GETTEX:87K  to $84k area.

4. RSI Bearish divergence on the 8h time frame. see the pink lines

5. The Inevitrade Pro+ indicator is flashing over bought

6. Finally you can see the numbers from 1 to 5 on the break out to the upside showing the elliot wave has been completed.

Let me know your thoughts.

Thanks