Looking for another opportunity to short bitcoin this week (BTC/USD)?
The dynamic resistance zone that BTC/USD is currently testing may well trigger a bearish trend for the original cryptocurrency.
We discussed BTC/USD hitting the resistance of a descending channel formation just over a week ago.
Today, the pair has challenged the lows from May once more.but has now risen once more.
Is there a chance to short bitcoin now?
Since the 100 and 200 SMAs are also around the psychological level, it is not unexpected that BTC/USD is struggling to sustain demand above the $27,000 level.
In fact, the trend line that served as resistance last week is not far from $27K either!
Incorporate it with a Stochastic indicator that is (nearly) overbought, and you have the makings of a probable bearish swing.
Sellers of BTC/USD who are certain that the pair will make new monthly lows can go short at the current price and set stops slightly above the swing high of $28,500.
You can also think about purchasing BTC/USD if you believe that the third successful defense of the $26,000 is a bottom.
Just be sure to execute it above the designated resistance zone to get extra proof of a bullish breakout!
