During the 12/15 session, we observed that POWR/BTC was consolidating around a range/channel support and assessed the reward to risk for a trade idea to buy around the 3360 satoshi level. It has rallied to 6500 satoshi before stalling at the end of the 12/18 session.
- Based on the targets we discussed and stop at 3200, the trade plan would have exited POWR at 6000 for almost a 64% gain.
- Remember this is against BTC, not USD.
- Now, price appears to be retreating after the sharp rally.
- I think when the 1H RSI comes back to 40, if price is in the large 4440-5000 area, we will see support.
- But first, will POWR/BTC come back below 5400, where it has found strong support already?
- It is possible that this correction is done in PRICE, but not in TIME. That means a sideways consolidation.
- Let's continue to monitor the consolidation/correction until the RSI is closer to 40 and then see if there is a support level we can rely on.