Candles test .0004 Structure
After one heck of a bearish move, we FINALLY see price hit a bottom right above the .0003 level and begin to correct. However, to expect another big rally may be wishful thinking as the crypto market as a whole has seen a decent drop in market capitalization in the new year, especially Ripple and XLM. However, we are starting to see a squeeze at the .0004 structure, creating what seems to be a nice resistance area.
Figure 1: Candles squeezing at the .0004 level, creating a strong resistance structure
Price is stuck, candles created a channel
Eventually, price went back down to the .0003 demand zone, creating a strong support structure and eventually we see price bounce between the 2 zones - creating a channel. Traders will look to trade on the breakout when we see candles close either above or below this channel, so it is unclear whether or not we will see a bullish or bearish move.
A channel is the area between a well defined support and resistance structure where price resides until a breakout occurs.
Figure 2: Price is now bouncing in between a structural support and resistance, creating a channel.
What are your thoughts on where price will break out?
Solid price analysis. I usually look at daily and hourly, but I am seeing a value in the 4 hour and notice many using it now.
Appreciate it! The 4 hour chart makes finding support/resistance levels easier for Cryptocurrenices, so its a nice way to determine where potential reaction points may be. I love your use of the daily to get an overall sense of when candles may squeeze before a rally or fall.
I guess everything depends on the BTCUSD. If the bitcoin will move up - we will not see the break out for a till the correction.
Here's hoping that nations will stop putting so many regulations for BTC and we see some good news!
@originalworks
Your Post Has Been Featured on @Resteemable!
Feature any Steemit post using resteemit.com!
How It Works:
1. Take Any Steemit URL
2. Erase
https://3. Type
reGet Featured Instantly – Featured Posts are voted every 2.4hrs
Join the Curation Team Here