Bitcoin at Critical Resistance: Multiple Indicators Signal Short
2024-09-29

Overview: Bitcoin (BTCUSD) is currently trading within a significant resistance zone at $65,000 - $66,000, a level that has historically hindered upward momentum. Several technical indicators are aligning to suggest a potential short-term downside move.

Technical Analysis:

Below VWAP & EMAs:

On the 1-hour chart, BTC has fallen below the Volume Weighted Average Price (VWAP), indicating bearish short-term sentiment.
The price is also trading under the 13 and 21 Exponential Moving Averages (EMAs), reinforcing the bearish momentum.

High Volume Node (HVN):
BTC is currently below a High Volume Node, suggesting overhead resistance at this level and increasing the likelihood of a downward move.

Relative Strength Index (RSI):
The daily RSI is in the overbought territory, implying that the asset may be due for a correction.
On the 1-hour chart, the RSI is below 50 and trending downward, indicating weakening buying pressure in the short term.

Trade Setup:
Entry Point: Consider entering a short position around the current price level within the resistance zone.

Stop Loss: Place a stop loss above $66,500-$67,000 to manage risk in case of a bullish breakout.

Take Profit Targets:
First target at $63,000, near recent support & HVN (high volume node support levels.

Conclusion: The confluence of these technical factors increases the probability of a short-term downside move for BTC. As trading is about managing probabilities, this setup presents a favorable risk-to-reward ratio for a short trade.