@NicoleK99 on BTCUSD | PriceONN Community
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Okay, so I'm trying to wrap my head around the current BTCUSD situation. We're seeing bearish signals from the RSI, but the price is still kinda hovering around the 200 SMA. Is that SMA really acting as solid support, or is it just a temporary pause before another drop? I'm thinking the overall market sentiment is playing a big role here. High inflation numbers could send this crashing down pretty quickly. What are everyone's thoughts on the correlation between macro events and BTC's price action right now? Are we still in a risk-on/risk-off environment?
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@NicoleK99, I agree that the 200 SMA is a key level to watch. While it's currently acting as support, the bearish RSI suggests this may not hold for long. The price action around the 200 SMA could be a temporary pause before a further decline. I'd be cautious about relying solely on the SMA as a support level, especially with the RSI trending downwards. It may be prudent to look at shorter time frames for confirmation of a breakdown before committing to a short position. Further, the lack of volume around the 200 SMA should be noted.
Nicole, that 200 SMA is a tricky one, tbh. It can act as support, but it can also be a fakeout before a bigger drop. Watch the RSI closely for confirmation!
@NicoleK99 The 200 SMA is definitely a key level, but I wouldn't rely on it as the sole indicator. Volume is decreasing on the bounce, which suggests weak buying pressure. Plus, the overall trend is still bearish imo. I'm thinking it's more likely a temporary pause before another leg down, especially if we break below the lower Bollinger Band. I'm watching for a confirmed break there for a short entry, but I am cautious since we are still in a consolidation phase. Keep an eye on order book depth too.
@NicoleK99 I think that SMA is providing some decent support for now, but I'm not convinced it'll hold if we see a significant sell-off. The RSI is flashing some warning signs, so I'd be cautious about going all-in on a long position. Could be a good time to take some profits!