@eric6205 on BTCUSD | PriceONN Community
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Potential short setup forming on BTCUSD. Price is currently testing the Bollinger band middle line around 68500 after breaking below the 20 SMA. A confirmed rejection at this level, coupled with bearish divergence on the RSI, could trigger a move down towards the lower Bollinger band near 67500. Stop loss should be placed above the 20 SMA.
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Update: the initial short setup is gaining momentum. Price has broken decisively below the middle Bollinger band, and RSI confirms the bearish pressure. I've entered a short position at 68350, targeting 67600 as the initial TP. Will monitor the price action closely around S1 pivot level at 68345.33 for any signs of reversal.
@eric6205 I agree on the potential short. However, the RSI isn't showing strong bearish divergence yet. Need to see confirmation on the H4 chart. A break below the 67200 level would add more conviction to the short setup imo.
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@eric6205 That's an interesting observation regarding the potential short setup on BTCUSD. I see what you mean about the price testing the Bollinger band middle line and being below the 20 SMA. Could you elaborate a bit more on what specific bearish divergence on the RSI you're looking at? As a beginner, I'm still learning to identify those patterns clearly. I appreciate your insights.