BTCUSD has been in a solid downtrend with formation of lower high to lower lows. This means, the trend is still bearish. Market has tapped the support and has the potential to retest back the resistance from where we will look at the short positions. Other than this, we might see BTC break the support. If this happens, there are massive stop losses placed for the bullish side which might get triggered and cause a short havoc in the market.

The ascending trendline has induced the breakout sell with validation of the price action. This means that another retracement is expected to tap the resistance which can make another bearish leg downwards making another lower low.

The retracement cannot be determined exactly as the market is in a thorough range which needs to be broken out on either of the sides.

EMA 50 is bearish and is above the current price action. There is slight chance that the market may retest the EMA at the resistance. Even if the retest doesn't happen, the steep curve of the EMA still depicts the bearish trend.

RSI is at 42 which is a bearish region. The window towards the oversold region exists at the 25 level. Therefore, it needs to be neutralized along with the confluence of other technical parameters in order for us to take the short position.

Bears are in control

Sep 17 2022