Sept. 6th Bybit Analysis:Watch Out for Dead Cat Jump After Collapsing

Cryptocurrencies were massacred last night, with both BTC and ETH recorded an approximate 20% losses. The dive of price last turned short term trend to downtrend again. In the following days, we should be alert for a dead cat jump: if the price rebounds, we should see it as an opportunity to short it, but not to long it.
BTCUSD
BTCUSD is still in a clear daily downtrend, which means we should short along it. In the 4H chart, however, we can see the price break through 61.8% Fibonacci with a shadow but closed above it. This situation usually predicts a short term reversal.
Therefore, if the price shows a small green candle here, we should see it as a dead cat jump and short it here. ST at the green candle’s high and the TP is 3 times of the ST.

ETHUSD
ETHUSD breaks the consolidation area since the end of August, this is not a good sigh. If you see the 4H chart, you can see the price is in a strong downtrend , and there is almost no support in short term. If it reaches to 232, we should short it here with a ST at 247 and TP at 200.

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