Looking for another chance to short bitcoin (BTC/USD) this week?
I gotchu!
BTC/USD is testing a dynamic resistance zone that just might lead to a bearish momentum for the OG crypto.
Bitcoin (BTC/USD): 4-hour
Just over a week ago, we talked about BTC/USD hitting the resistance of a descending channel pattern.
Fast forward to today and the pair had retested May’s lows…but has come back up again.
Is this another opportunity to short bitcoin?
BTC/USD is having trouble getting sustained demand above the $27,000 mark, which isn’t surprising since the 100 and 200 SMAs are also around the psychological level.
In fact, $27K is also not far from the trend line that held as resistance last week!
Add to that an (almost) overbought Stochastic signal and you’ve got a recipe for a potential bearish swing.
BTC/USD sellers who are confident that the pair would make new monthly lows can short at current levels and place stops just above the $28,500 swing high.
If you think the third successful defense of the $26,000 is a sign of a bottom, you can also consider buying BTC/USD instead.
Just make sure to do it above the resistance zone that we’ve marked so you have additional confirmation of a bullish breakout!
