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.

I then continued my analysis on the weekly timeframe and on this timeframe I could see the market more clearly.

I could see more candles as each candle on this timeframe is being formed within the trading period of 7days.

And looking carefully on this timeframe, I was able to detect a key level and this level is functioning as a resistance level to the market price and it is expected for the market to be rejected once it trades towards this level.

I then moved to the daily timeframe and on this timeframe I could see the market more clearly, I noticed that each candle on this timeframe is being formed after a trading period of 24hrs.

And looking carefully, I was able to identify another key level and this level is functioning as a support support level to the market and the market is expected to be rejected once it trades towards this level.

And from the above screenshot, we can see that the market has made several touches on this level and has been unable to break below it, and as such, we can refer to this level as a valid level.

And the screenshot above is that of the 4hr timeframe, and on this timeframe we can see more noise in the market.

I can feel the presence of the buyers and sellers as they struggle to drive the market to their preferred direction.

And looking carefully, I could see that the market has been rejected from this support level and I expect it to retest this level again so I can place my buy order on the market.

And getting to the 2hr timeframe, I could see the market more clearly.

I could see more noise on this timeframe than any other timeframe and I was able to identify another level that I expect the market to trade towards and this level will function as my take profit position.

And with my bullish bias of the market, I decided to search for a trading confluence using the relative strength index 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.

Applying the rsi to the monthly timeframe, I noticed that the market is being overbought and an overbought market can be detected when the rsi crosses above its 80% line.

And this is a market condition that signals a bearish trend reversal, it shows that the bulls have lost strength in the market and the bears have gained strength in driving the market to their preferred direction.

I then continued on the daily timeframe and on this timeframe, I realize that the market was being oversold and an oversold market signals a bulllish trend reversal.

That is, a change in market strength from the sellers to the buyers, and as such, I decided to move to the 2hr timeframe in search of entry.

I then moved to the 2hr timeframe, and it is on this timeframe that I place my entry into the market.

And looking carefully, I placed my buy order on the closest support level to the market and my take profit was placed on the closest resistance level to the market.