The setup
Bitcoin was retracing the two large downward candles made between the past Sunday and Monday. We see also that the descending red trendline, which traces the tops of the underlying downward trend acts as resistance to stop further advances of BTC. The price approached the upper edge of the descending channel and bounced back from the $7,000 key level. Since then, it is behaving weakly. Now the breakout below the 6,800 level shows the sellers are in control.
Key Trading levels
- Entry short: 6770
- Stop-loss: 6870
- Take Profit: 6560
Risk:
- 1 BTC = $100 risk
- 0.1 BTC = $10 risk
- 0.01 BTC = $1 risk
The reward is 2x the risk.
