Bitcoin analysis in Daily Chart, Fibonacci Levels and Trend Line
Hello traders!
I bring you this Bitcoin technical analysis after a couple of weeks when news made an impact in the market in general, but specially in Crypto. El Salvador adopting Bitcoin as legal tender, and later on the Evergrande situation. But after taking mid or long term decisions, we need to see the bigger picture.
First of all, the important levels to consider
- 40500 - Support level being tested, it matches with 50% Fibonacci Retracement
- 34200 - Volume Profile´s most important level
- 49000 - Next importante resistance
By this time the daily candle is leaving a large wick, that may mean the end of the pullback. Although there isn't a big volume yet, we should wait for confirmation. The rsi is also testing a support level, after showing bearsish divergence in past few days. So if this levels are respected, and we see a bounce on price and in the oscillator, the uptrend may go on. Then we would have to take a look at the resistance in 49 - 51 k, and in the downtrend line (the biggest green line), and see if the price is rejected.
In the bearish scenario (what we always have to consider) we can see a lower high made in September 6, after the higher highs between april and may. So its important for the price to break the resistances ahead, otherwise it might be the beginning of a bear market.
This is not a financial advice, always do your own analysis, and always manage your risk in every position you open.
If you have any opinions of this analysis, please leave it in the comments, I'll appreciate it.
I bring you this Bitcoin technical analysis after a couple of weeks when news made an impact in the market in general, but specially in Crypto. El Salvador adopting Bitcoin as legal tender, and later on the Evergrande situation. But after taking mid or long term decisions, we need to see the bigger picture.
First of all, the important levels to consider
- 40500 - Support level being tested, it matches with 50% Fibonacci Retracement
- 34200 - Volume Profile´s most important level
- 49000 - Next importante resistance
By this time the daily candle is leaving a large wick, that may mean the end of the pullback. Although there isn't a big volume yet, we should wait for confirmation. The rsi is also testing a support level, after showing bearsish divergence in past few days. So if this levels are respected, and we see a bounce on price and in the oscillator, the uptrend may go on. Then we would have to take a look at the resistance in 49 - 51 k, and in the downtrend line (the biggest green line), and see if the price is rejected.
In the bearish scenario (what we always have to consider) we can see a lower high made in September 6, after the higher highs between april and may. So its important for the price to break the resistances ahead, otherwise it might be the beginning of a bear market.
This is not a financial advice, always do your own analysis, and always manage your risk in every position you open.
If you have any opinions of this analysis, please leave it in the comments, I'll appreciate it.
Comment:
Here is an update from previous analisys. When I first publish this idea, the price was testing an strong support level that matched with the .68 Fibbonacci Retracement level. From that point, we had two possibilities, confirm that price as a support, or break to the downside. What ended up happening was starting a new uptrend breaking a big resistance at 50-52k. Next important level is at 57-59k.