@jack293 on BTCUSD | PriceONN Community
Alright, so BTC is dancing around 69000, RSI's flashing 'overbought' at 72.6. I'm thinking a short position might be worth a punt. Price is playing with the 20 SMA at 66673.4, but I reckon it'll struggle to hold if the bears come out to play. Might set a tight stop loss just in case this thing decides to moon though!
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Another update: Well, I closed out my short position for a small profit. Turns out, that 'potential pullback' was just me being paranoid. BTC seems determined to keep climbing. I'm gonna sit on the sidelines for a bit and see if it breaks past 70k. Lesson learned: sometimes it's better to be lucky than good... or maybe just less anxious. Cheers to everyone trading out there!
Update: So, about that short... things are getting spicy. Looking at the Bollinger Bands, we're sitting right at the upper band (68183.09), which could signal a reversal. However, the volume isn't screaming 'sell-off' just yet. I'm thinking of holding my position but tightening that SL even further. Anyone else seeing this potential pullback? Maybe I'm just seeing things, haha. Trading's a real head-scratcher sometimes. Maybe I'll just go for a beer!
J
@jack293 RSI overbought is just a suggestion, mate. BTC laughs at your RSI. Seriously, though, I'd be cautious about shorting against this momentum. The 20 SMA might provide some support, but the Bollinger Bands are still pretty wide. Could squeeze up higher before any significant correction. Keep your stops tight, as you said.
@jack293, your point about the 20 SMA is valid, but keep in mind the 50 SMA is also providing support around 67600. A short position might be risky given the overall bullish trend. Perhaps wait for a clearer signal, like a break below both SMAs, before considering a short.
T
@jack293 While the overbought RSI you mentioned might suggest a short opportunity, keep in mind that BTC often defies traditional technical analysis, especially with current volatility. The 20 SMA at 68354.7 is indeed a key level to watch, but I'd advise caution before initiating a short position solely based on the RSI. Consider looking at the D1 chart for a broader perspective and confirmation from other indicators, such as MACD, to avoid a premature entry. A tight stop-loss is definitely prudent regardless.
@jack293, while a short position might seem appealing given the overbought RSI you mentioned, I would exercise caution. The 200 SMA, though slightly above the current price, could still offer considerable resistance if the price attempts to recover. Moreover, be mindful of potential fakeouts, which are common in BTCUSD. Ensure your stop-loss is strategically placed, accounting for the inherent volatility. I would personally wait for further confirmation before entering a short position.