Topdown Analysis Of BTCUSDT Using Support And Resistance Strategy And RSI Indicator As A Confluence

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Hello great minds,

It is a great opportunity to appear before you all today to share my analysis on bitcoin.

I believe you are all doing perfectly fine and are enjoying your activities in the community as you actively share in steemit promotion across various social media platform.

Bitcoin as we know it, is the father of all other cryptocurrency and it is worth carrying an analysis on, since it is the driver of all other cryptocurrency in the cryptospace.

Today, I will sharing my analysis of btcusdt and I will be beginning from the monthly timeframe.

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ANALYSIS USING SUPPORT AND RESISTANCE STRATEGY

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My analysis often begin from the higher timeframe and it moves to the lower timeframe.

On the higher timeframe like the monthly timeframe, I identify market trends, and on other timeframe I search for key market levels and also search for entries into the market.

The above screenshot is that of btcusdt on the monthly timeframe as we can all confirm.

And from the above screenshot, we can see that there are less candles on this timeframe, and this is because each candle formed on this timeframe takes an activity period of one month.

Also on this timeframe, we can notice that the market trend is easily identified, and from the screenshot above, we can see that Bitcoin market is bullish overall.

Then I continued my analysis on the weekly timeframe, and on this timeframe I could see more candlesticks as each candle was formed within the time period of 7 trading days.

On this timeframe, I was able to spot a key level and this level is functioning as a support level to the market place, as it initially was functioning as a resistance level.

When a resistance level gets broken, it turns to a support level and we could see such from the screenshot above.

And to get more market information, I came to the daily timeframe, and on this timeframe I could see the market more clearly.

On this timeframe, I went ahead to adjust the support support level, and from the screenshot, we can see that the market has made several touches on this support level which makes it a valid level.

And to get more market information, I decided to move to the 4hr timeframe

Getting to the 4hr timeframe, I could feel the presence of the buyers and sellers in the market as they strive to drive the market price to their preferred direction.

And from the above screenshot, I can see that the bears have been in control of the market for several hours, days and few weeks.

And I noticed that the market has just recently traded into this support level, and I expect to see a bullish rejection, as this level has more buyers than sellers.

I then moved to the 2hr timeframe in search of entry into the market, as it is on the 2hr timeframe that I search for my entry into the market.

And on this timeframe, I could see the same structure as on the 4hr timeframe, and this strengthened my bullish bias of the market.

And before entering the market, I decided to search for confluence using the rsi indicator.

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CONFLUENCE USING RELATIVE STRENGTH INDEX INDICATOR

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The relative strength index indicator is an indicator that helps to identify overbought and oversold market.

When a market is spotted to be overbought, it is a bearish trend reversal signal and when it is oversold, it is a bullish trend reversal signal.

An overbought market can be spotted when the rsi crosses above the 80% line and an oversold market is detected when the market crosses below the 20% line.

I then decided to begin with the monthly timeframe, and on this timeframe, I could see that the rsi has crossed above its 79% line.

And this is an indication that the market is being overbought and an overbought market is one that signals a bearish trend reversal.

That is, a change in market strength from the buyers to the sellers, and in essence we can expect to see the formation of several bearish candles.

And moving to the daily timeframe, I added the rsi indicator again, and I noticed that it has crossed below its 20% line.

And this is an indication that the market is being oversold and an oversold market signals a bulllish trend reversal of the market.

That is, it shows that the sellers have become weak in the market and the buyers are about to take control of the market.

Having my bullish bias of the market and my confluence from the daily timeframe, I decided to enter the market on this timeframe.

And I proceeded to place my buy order on the closest support level to the market and my take profit was placed on the market closest resistance level, just as seen above.

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CONCLUSION

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Bitcoin is the father of all cryptocurrency and it is the driver of all other altcoins in the cryptomarket.

I have shared my analysis on the market and I expect to see a momentary bullish move.