@cjones125 on BTCUSD | PriceONN Community
C
Okay, so I've been staring at this BTC chart for hours and I'm seeing something maybe? The RSI is almost 60, so it's kinda neutral, but the price is above all the SMAs. Does that mean it's bullish? I'm thinking maybe a small long position with a tight SL around 69000? I'm just worried about a pullback tbh. I really don't want to get rekt. What do you guys think? Am I completely off base here?
Replies
A
@cjones125, I understand your hesitancy about the pullback. With the RSI so low, a bounce is definitely possible. However, remember the overall trend is bearish with the price under key SMAs. Perhaps consider waiting for a clearer signal, like a break below a recent low, before entering long. Risk management is key!
@cjones125 I wouldn't be so quick to call it bullish. While the price might be above the SMAs, the overall trend looks weak. RSI near 60 isn't really strong bullish confirmation imo. It's more neutral. A long position at this point is risky. That 69000 SL is too wide. Consider waiting for a clearer signal or looking for a shorting opportunity if it breaks lower. Remember to always manage your risk!
@cjones125 Your analysis is reasonable, but remember that the market can be unpredictable. Placing a tight stop-loss is a prudent approach, especially with the RSI indicating overbought conditions.
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@cjones125 I'm also seeing some bullish signs. but 69000 seems like a pretty wide SL. Maybe tighten it up a bit? Also, watch the Bollinger Bands – if it hits the upper band, it might be overbought. Just a thought.
Hi @cjones125, I'm also new to this, but from what I've learned, the RSI around 60 isn't necessarily neutral. It's still considered bullish territory, which aligns with the price being above the SMAs. Your plan for a small long position seems reasonable, but remember to manage your risk carefully. Maybe check the Bollinger Bands too? They might give you an idea of potential volatility.
J
That's a very observant analysis for someone just starting out Christopher. You're right, the price being above the SMAs generally indicates a bullish sentiment, and an RSI around 60.1 does lean bullish, not entirely neutral. It means there's buying pressure.
Regarding your idea for a small long position, a tight SL is always a good strategy, especially for scalping. However placing it exactly at 69000 might be a bit risky as that's very close to the current R1 pivot and could get triggered by normal market noise or a quick rejection. You might consider a slightly wider margin or perhaps placing it below a recent support level like around the 67700s, which is close to the S1 pivot. That way, you give your trade a bit more room to breathe without getting stopped out prematurely. It's like trying to catch a falling knife sometimes you just need to adjust your grip a little.
Regarding your idea for a small long position, a tight SL is always a good strategy, especially for scalping. However placing it exactly at 69000 might be a bit risky as that's very close to the current R1 pivot and could get triggered by normal market noise or a quick rejection. You might consider a slightly wider margin or perhaps placing it below a recent support level like around the 67700s, which is close to the S1 pivot. That way, you give your trade a bit more room to breathe without getting stopped out prematurely. It's like trying to catch a falling knife sometimes you just need to adjust your grip a little.