What's up traders, I hope you're all having a good trading week.
Let's analyse BTC/USD on the 4H chart.
This analysis is a follow up analysis of my previous Bitcoin (See related ideas below for details of my original analysis for more information), and I strongly recommend reading the previous analysis so you can better understand this one, and how it is playing out perfectly in accordance with my previous analysis.
When analysing the chart, it is clear we are trading in between a horizontal support/resistance zone at 8660 (Which perfectly coincides with the flag side-wards resistance I showed in my previous Bitcoin analysis) and a lower support zone at 7940. Due to the upper horizontal zone perfectly coinciding with the flag resistance, it is clear this is a hidden key level which is going to act as an extremely strong resistance. With this new information, we can be extremely confident that this resistance will be extremely hard to break, and it is likely we will see a lower retest to around 7960 before the upside continues (This is supported by Dollar Index conditions too.)
We also had a death cross on 15th May, and since have been trading lower. The 20 and 50 moving average have just converged positively after Bitcoin had a slight upside correction. But now, I expect bears to push further, spread the averages and create a flag move, which will complete at around 7940.
Once we hit 7940, we can reconsider our position.
I will update this analysis when I receive above 40 likes.
Let's analyse BTC/USD on the 4H chart.
This analysis is a follow up analysis of my previous Bitcoin (See related ideas below for details of my original analysis for more information), and I strongly recommend reading the previous analysis so you can better understand this one, and how it is playing out perfectly in accordance with my previous analysis.
When analysing the chart, it is clear we are trading in between a horizontal support/resistance zone at 8660 (Which perfectly coincides with the flag side-wards resistance I showed in my previous Bitcoin analysis) and a lower support zone at 7940. Due to the upper horizontal zone perfectly coinciding with the flag resistance, it is clear this is a hidden key level which is going to act as an extremely strong resistance. With this new information, we can be extremely confident that this resistance will be extremely hard to break, and it is likely we will see a lower retest to around 7960 before the upside continues (This is supported by Dollar Index conditions too.)
We also had a death cross on 15th May, and since have been trading lower. The 20 and 50 moving average have just converged positively after Bitcoin had a slight upside correction. But now, I expect bears to push further, spread the averages and create a flag move, which will complete at around 7940.
Once we hit 7940, we can reconsider our position.
I will update this analysis when I receive above 40 likes.
When price hits this level, we can see if it bounces. If it bounces, I will be looking for a buy opportunity using a lower timeframe and my trading strategy.