Disclaimer: The information presented does not constitute financial, investment, trading or any other type of advice and is solely the opinion of the writer.
Bitcoin has fallen below $20,000 in recent hours. The failure of the bulls to defend both the USD 20.8k and USD 20k levels indicated that sentiment was still very apprehensive in the crypto market.
Fantom showed hints of a bullish break towards USD 0.25 two days ago. This move was not sustained and at press time the bias appeared to be turning bearish again.
FTM- 4-hour chart
The H4 chart showed a bearish bias for FTM, but this was reversed a few days ago. The downtrend formed a lower high at $0.26, but the price closed a session just above this figure.
At the same time, Fantom also formed higher lows, as evidenced by the ascending trendline support.
Still, this short-term uptrend has broken down in recent trading hours. It broke the low of $0.22 as well as the trendline support.
FTM-1 Hour Chart
On the hourly chart, the higher lows hitting the trendline can be seen more clearly. In the past few hours, this trendline support has broken. At the same time, as the price fell below a higher low of the uptrend, there was a break in the market structure.
Hence, the structure was now in favor of the bears, but due to the move to $0.255, the bias was more complicated than a straight forward bearish.
The break from the trendline support suggested that a retest of the same resistance could provide, and a move towards the lows of $0.20 could occur.
The hourly RSI has slipped below the neutral 50 to highlight bearish pressures. It hasn’t gone above 60 in the past week. As a result, the buyers lacked strength. The Stochastic RSI has formed a bullish crossover in the oversold territory. This didn’t necessarily mean a strong move up for Fantom.
The OBV failed to hit the highs of a few days ago and also signaled the lack of buying pressure. The CMF was also below -0.05 demonstrating significant capital flow out of the market.
The indicators on the lower timeframe showed bearish momentum and significant selling pressure. Also on the H4 chart, the bullish bias has not been particularly strong. Instead, a bearish bias was preferred.
A retest of the former trendline support, now resistance, can be used to enter a short position. A stop-loss above the USD 0.25 resistance may be considered, while the USD 0.2 local lows may be used to take profits.
This post Fantom traders going short may have a stop-loss above this level
was published first on https://ambcrypto.com/fantom-traders-going-short-can-have-stop-loss-above-this-level/