BTC tests Crucial Region to Rebound or Retrace

21 พ.ย. 2019

We are looking at BTCUSD with Heikin Ashi Candles on a 1-Day Time Scale.

Heikin Ashi Candles are advantageous in these areas:
- It gives a quick view on whether the market is currently bearish, bullish or neutral
- It cuts out distractive noises from the chart, showing clearer trends

Now we clearly see a downtrend forming for 2 weeks and onwards, with 15 consecutive red candles. This immediately indicates the momentum that we are continuing with this downtrend in the S/R.

The indicators also shows us we are convergent with the price trend:
- RSI has been decreasing since 6 Nov, still yet to reach an oversold area
- OBV has shown decreasing volume since 6 Nov
- MACD line crossed signal line and continues below since 8 Nov

Now, where I think it will face major support is at the red region I've drawn in the chart, namely the 7.5k-7.7k region. Once it hits that region, we will see price react hugely whether to:
1: Bounce back up to test the 8.7k-8.8k major resistance
2: Falls gradually towards the $6.5-6.6k major support

27 พ.ย. 2019

ความคิดเห็น

27 พ.ย. 2019

ความคิดเห็น

So we have seen the price follow the downtrend and break the 7.5k support level quicker than what we expect, even testing the $6.5-6.6k major support in the last 48h. However, the price has reacted strongly with a rebound up to the $7.1-7.2k region, now moving sideways.

There were a total of 19 1-D red candles formed before the rebound and the last time this occurred was exactly 1Y ago, on Nov 2018. Afterwards, we witnessed a period of sideways trading for 3mos+.

RIght now we have a major support at 6.6k and a major resistance at 7.5k. Price looks to be forming a sideways movement b/n these 2 horizontals.