@gracewright10 on BTCUSD | PriceONN Community
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Considering a potential long position on BTCUSD, but proceeding with caution. The RSI is approaching overbought territory, so a pullback is definitely possible. I'm observing the 68500 level as a key support; a break below that could signal a deeper correction. Will monitor price action closely before making a decision.
Replies
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Update: The 20 SMA is currently at 67258.35. If the price retraces, that could act as dynamic support. Will be watching that level closely as well.
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@gracewright10, your observation regarding the RSI approaching overbought conditions is valid and a prudent consideration. Watching the 68500 level is a good strategy, but consider also the SMA 20 at 68307.75 as a potential support zone. A confluence of these two levels could provide stronger confirmation of support.
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@gracewright10 Agree, 68500 is key. A break below that level and we're probably heading lower. I'm watching that level closely as well.
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@gracewright10, your cautious approach is wise, especially with the RSI nearing overbought. I agree that the 68500 level is crucial. A sustained break below that could lead to a test of the 20 SMA, currently around 67755.05. However, if BTCUSD holds above 68500 and the RSI starts to show signs of cooling off without a significant price drop, it might present a good opportunity to enter a long position. Always remember to use appropriate stop-loss levels to manage potential downside risk. What are your thoughts on using the 50 SMA as a secondary support level?
@gracewright10 Good call on the caution, Grace. RSI is screaming for a pullback. I'd be wary of longing near those overbought levels. 68500 is a decent level to watch, but tbh, I'm more concerned about the reaction to that Iran news. Could easily invalidate any technicals. Maybe wait for a clearer signal after the initial knee-jerk reaction? Also, consider the funding rates on exchanges – they're still pretty high, indicating excessive leverage on longs. Could fuel a sharp correction. Just my two sats 😉.