Bitcoin Technical Support/Resistance Zones we are watching

in LeoFinance4 years ago

Hello Hive fans and LeoFinance fans!

We are back with a small analysis on #Bitcoin.
We will keep the posts short,

Feel free to comment your suggestions/improvements on our posts.
Constructive criticism will be appreciated :)
Best comment will receive an upvote from us with 100% power (yeah we know its small initially, but we will be growing)

$BTC/USD

Timeframe: 1D
Overall Bias: Bearish(or negative)

Few hours ago, Bitcoin price dumped from almost 10300 levels to as low as 9200 (8.8k -ish levels on bitmex).

We analysed the market to see a confirmed resistance on daily, and we see a rejection from the resistance as well.

Our suggestion: Keep an eye on the Weekly candle below:
If it closes anywhere below 9600, we dont think its a very good sign, especially for short-mid term.

(Long term, we are always bullish, so dont worry 😉)

Here's the weekly candle below:
image.png

If it forms a candle similar to a gravestone doji,

For educational purpose, refer this: https://www.investopedia.com/terms/g/gravestone-doji.asp

You know what to do :)

On this chart below, you can see that it can be classified as a retest of the daily resistance, and it failed to break above.

Of course it can still break above, and the bearish case will be invalidated

Also note that there was a RSI divergence, as RSI made a lower low, and price still stayed flat, and/or went above. So we dont currently see a very bullish case unless it breaks above the nearest daily resistance.

Here's another supporting article in case you want to learn more: https://www.macroption.com/rsi-divergence/

image.png

Also let us know if you want charts of your favourite altcoins, and we will cover all of them one by one :)

Up Next:
We will cover smaller timeframes as well, wheneer an opportunity comes, so dont miss out!

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Posting from the Leofinance is ideal as it helps with SEO. Thanks.

Posted Using LeoFinance

Thanks a lot. This is noted!
Will definitely keep in mind on future posts :)

Posted Using LeoFinance

Nice analysis here.
Well I do feel Bitcoin will more likely continue sideways movement for sometime here.
There's chance of altcoins popping up soon, Do cover a TA on Hive as well yo.

Thanks for the kind words :)
Sure we will post about altcoins soon dont worry!

Nice analysis.

Posted Using LeoFinance

Thank you for finding this useful :)

Posted Using LeoFinance

Nice post

I want to buy bitcoin but I'm waiting that it goes down a bit to enter position.
Do you think it will be below $ 8500 soon?

I personally feel a large part of the recent Bitcoin rally has been also fueled by the stock market recovery, and the markets are still somewhat correlated.

Currently, I do feel stocks are due for a correction, and it isnt making sense that they are still rallying without any actual solid reasons, and in spite of the unrest, economic slowdown and all stuff going on. I see something which people usually chart on the market as a "divergence" so they are still due for a correction unless of course, they break above. the previous all time highs. (which will greatly invalidate the bear case.)

my personal opinion would be to buy a small amount and just wait unless it breaks above the resistance, or unless it dips a bit more. (Not any financial advice, but just a suggestion )

Things to consider:

  1. Negative interests can fuel the price (I'll write an article on it soon)
  2. Stock market can also affect price.

Hope it helps!
I'll be personally waiting with some cash to buy dips. Already sold some part around 9600-9700

Thanks for the detailed explanation 👍

Sure, no problem!
Consider our articles to be more like an Analysis about the markets rather than hardcore trade setups!
We have plans to post about trade setups as well in future! :)