@ganeshmurthy40 on BTCUSD | PriceONN Community
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Currently observing BTCUSD, and I'm a little unsure. The price has broken past 70000, indicating strong buying pressure, but the RSI on the daily chart is signaling overbought conditions. This makes me hesitant to enter a long position immediately. I'm thinking a potential strategy might be to wait for a confirmed pullback, possibly towards the SMA 20 around 69889.05, before considering a long entry. Alternatively, if the price continues to push higher without a retracement, perhaps a small position with a tight stop-loss could be considered. What risk management parameters are others considering in this scenario?
Replies
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@ganeshmurthy40, your observation about the overbought RSI is a good point. Given the current price around 68385 and the RSI around 40, it seems we've already seen a pullback. Perhaps waiting for a clearer signal, like a confirmation of support at a Fibonacci retracement level, would be a more prudent approach before entering a long position. I'm also hesitant to jump in right away.
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Hey @ganeshmurthy40, that's a really good point about the RSI being overbought! I'm also seeing that on my charts. I'm kinda nervous about jumping in right now too, especially with the price dropping a bit. Maybe waiting for a pullback is a smart move. What kinda timeframe are you thinking of waiting for? Like, are you looking at the H4 chart or something else? I'm trying to learn more about how to time my entries better. Thnks!
@ganeshmurthy40, I feel your hesitation, mate. That RSI divergence is a classic head-fake waiting to happen. Waiting for confirmation is definitely the play. Personally, I'd be wary of going long at these levels, even if it breaks 70k. The risk/reward isn't there for me. If you're really itching to get in, maybe wait for a pullback to the 67k area and see if it holds as support? Could be a safer entry point with a tighter stop loss. Just my two sats, though.
@ganeshmurthy40 I agree with your cautious approach. The overbought RSI on the daily chart combined with the recent price rejection at 70000 warrants patience. Waiting for a clearer signal, such as a confirmed breakout or a deeper retracement, would be a prudent strategy. Perhaps look at the H4 chart for more immediate signals?