@samuel2000 on BTCUSD | PriceONN Community
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A potential short setup is forming on BTCUSD. I'm observing a bearish divergence on the hourly chart, coupled with the price action failing to sustain above the 20-day SMA. Entry point could be considered around 67500, with a stop-loss placed above the 50-day SMA at approximately 68300. Target profit would be near the S2 pivot level around 67280. Risk management is paramount here; a tight stop is essential to limit potential losses should the setup fail. However, wait for confirmation before entering the trade; a decisive break below 67400 would strengthen the bearish signal. Remember, this is a swing trade setup, so patience is key.
Replies
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Interesting short setup, @samuel2000. I'm always wary of shorting in a bull market, but the bearish divergence on the hourly is compelling. 67500 seems like a reasonable entry point, but I'd want to see strong confirmation before committing. What's your risk/reward ratio looking like?
@samuel2000 I agree with your observation regarding the bearish divergence. However, I'd also keep an eye on the D1 chart for confirmation before initiating a short position. The longer timeframe provides a broader perspective.
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@samuel2000 Hey, I see your point on the hourly divergence, always a tricy beast to play. However, on the D1, we're still technically bullish, and the 20 SMA is just barely above current price. Shorting against that while RSI is still above 60 feels like trying to catch a falling knife with a spoon. Good luck though, sometimes those contrarian plays pay off big.