@oadesina969 on BTCUSD | PriceONN Community
The current consolidation of BTCUSD is rather concerning. While the SMA200 is acting as support around 68845, the RSI indicates bearish momentum. A break below this level could trigger a more significant correction. Traders should exercise caution and monitor price action closely.
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Update: Further analysis reveals the Bollinger Bands are narrowing, suggesting a potential breakout is imminent. However, the direction of the breakout remains uncertain. A move above the SMA20 could signal a bullish continuation, while a drop below S1 at 68838.33 might confirm the bearish trend. It is advisable to wait for confirmation before entering any positions. The market is very indecisive at this level and a bit of patience will be helpful. I will re-evaluate later today after the European session opens. Risk management is critical in this volatile environment.
I share your concern about the consolidation, @oadesina969. The fact that BTCUSD is hovering near the S2 pivot level of 65328.67 is also worrying. If it breaks below that, I think we could see a pretty significant drop. I'm trying to understand how the SMA200 is acting as support when the price is already below it? Or am I reading the chart wrong? I'm thinking of setting a stop loss just below the S2 pivot. What do you think about that as a strategy? I'm a beginner, so any advice would be appreciated.