Conclusion first: Do not go long on the rebound. Short on the way up.
Objective market situation
Chart 1. The daily chart has confirmed a breakdown. The 812 range is a non-precise price! See the chart for details! The turning point marking the end of the bearish structure is 84.
Chart 2. 4-hour level. There is a rebound around 79. Resistance above at 81/821. Below 792 there is still a vacuum zone.
Subjective view
With this kind of daily breakdown, unless there is a huge volume candle to recover it, the previous month's "non-bullish retracement" view will continue. It will test support again down at 7.6. Currently, the daily MACD is also below the zero line. So continuing to short on the rebound is reasonable.
At the 4-hour level, the short positions at 1/2/3 given in the past two weeks started this downtrend after plundering 2. Last Friday's break below 815 ended the 1-hour bullish structure and continued the 4-hour bearish structure. Although there is a rebound around 79, combined with contract data, it is more about shorts reducing positions rather than longs entering. Also, the decline and rebound starting from 8.7 has seen multiple effective Fibonacci 0.618 levels. The current 0.618 is around 83.
Trading advice
Based on the above different timeframes, follow the trend.
Short at 827-83, this is the optimal entry zone. Stop loss at 84.
If the market continues a low-volume rebound today or tomorrow, short near 815 as well. Stop loss around 83.
Of course, you can split positions between 815 and 83 with a stop loss at 84. Just trade according to your own timeframe. $BTC #The October FOMC interest rate decision will be announced this week
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