Cryptocurrency has been in a downward spiral since few months. The trend is seemingly bearish on all higher time frames, but the Daily and the H4 is still looming around in a range. The support and resistance areas are $17500 and $22500 respectively. Right now, market is tapping the resistance level in a downtrend. After testing the level, market is still looming around this area and potentially forming a bearish rejection. 

This resistance level will act as rejection zone with the price action. If the market rejects this level, only then we will be going short on this pair and ride it all the way till the support level. We will short the crypto once it breaches the support level at 22000.

In a rang bound market, trendlines and retracement levels do not pin point a clear direction. As the bitcoin is in a range bound market in a downtrend, we do not particularly see the need to use these factors in this setup.

EMA 50 is bullish. After breaking the EMA 50, market was unable to retest the EMA 50. We can short the crypto till the retest of the EMA 50. It might wick pass through the EMA 50. It will be our catalyst for a short setup.

RSI is at 48 at the moment, which is the bearish region. Market has the open window towards the over sold region. Till this region, we have the short side intact. If market drops to the over sold level before our setup is induced, we will hold on to the short setup.

Bitcoin shorts still intact

Jul 23 2022

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