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.
ANALYSIS USING SUPPORT AND RESISTANCE STRATEGY
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.
I then moved to the weekly timeframe to continue my analysis, and on this timeframe, I noticed that there are more market candles than on the monthly timeframe.
And looking carefully, I was able to spot a key level on this timeframe and this level is functioning as a resistance level to the market price.
As history as shown, the market is expected to be rejected to the downside when it trades towards this resistance level.
This level can be said to be a valid level as it has been severally respected by market price.
Getting to the daily timeframe, I could see more market activities, I could feel the presence of the buyers and sellers as they struggle to push price to their preferred direction.
On this timeframe, I was able to simplify my marked level, and here it is functioning as a support level to the market price.
This level is a valid level as the market has made several touches on this level and whenever the market trades towards this level, the market is expected to be rejected to the opposite direction
Getting to the 4hr timeframe, I could see the market more clearly, I could see noise in the market as the buyers and sellers struggle to push price to their preferred direction.
Looking carefully on this timeframe, I was able to spot another level and this level is functioning as a resistance level.
On this level, it is evident that there are more sellers than buyers and as such whenever the market trades towards it, the market is expected to be rejected to the downside.
The most recent bearish leg of the market is as a result of rejection from this resistance level.
I then continued my analysis on the 2hr timeframe, and on this timeframe, I could see more market activities.
I could see more market movements which is as a result of manipulation between market makers.
Since I take my analysis on the 2hr timeframe, I decided to add the rsi indicator as a confluence, and from my analysis, I have developed a bearish bias of the market.
CONFLUENCE USING RELATIVE STRENGTH INDEX INDICATOR
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.
Applying the rsi to the monthly timeframe, I noticed that the market is being overbought and this is because the rsi has crossed above its 80% line.
And this is an indication that the bears are about to take a control of the market, and as such we should expect to see bearish candles.
This signal is in alliance with my analysis using support and resistance strategy.
On the daily timeframe, I noticed that the market is being oversold, and this is because the rsi has crossed below its 20% line.
From this screenshot, we expect to see a bullish move of the market, a bullish retracement probably before the market continues on its main move.
I then continued my analysis on the 2hr timeframe, as it is in this timeframe that I take my entry into the market.
Getting to the 2hr timeframe, u noticed that the market is being oversold, that is, it's rsi has gone below its 20% line.
And this is an indication that the market is expected to form some bullish candles, and from my analysis, I expect to see bullish retracement before the market continues its bearish move.
With this analysis, I decided to place a sell order in the market, I placed my entry on the closest resistance level and my take profit on the market closest support level.
CONCLUSION
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 bearish move.
https://x.com/JuecoYoung/status/1800651238188478542
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