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 continued my analysis by moving to the weekly timeframe, and on this timeframe, I could see that formation of several candles, as each candle is being formed within the trading period of 7days.
And looking carefully, I was able to identify a key level, and this level is functioning as a support level to the price chart, and the market is expected to be rejected whenever it trades towards this level.
And from the above screenshot, we can see the validity of this level as it formerly functioned as a strong resistance level to the price chart.
I then continued my analysis by moving to the daily timeframe, and on this timeframe, I could see the formation of several bullish and bearish candles in the market which indicated the presence of buyers and sellers.
And looking carefully, I was able to identify another key level and this level will be functioning as a support level to the price chart.
And from the above screenshot, we can see the market make several touches on this level.
And moving to the 4hr timeframe, I could see lots of noise in the market, I could feel the presence of the buyers and sellers as they struggle to drive the market to their preferred direction.
And looking carefully, I noticed that the bears are in control of the market as it kept forming lower highs and lower lows, and also we can see it has retested its support level.
And as such, I decided to move to the 2hr timeframe in search of an entry into the market.
I then continued my analysis by moving to the 2hr timeframe, as I could see the market was just rejected from a support level, I expect it to retest this level before I take my trade again.
And then I decided to search for confluence using relative strength index indicator.
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 could see that the market is being overbought, as the rsi crossed above its 80% line.
And an overbought market is understood to be a bearish trend reversal market, that is, a change in market strength from the buyers to the sellers.
And moving to the daily timeframe I could see the market more clearly, and I could see that the market is being overbought, and an overbought market can be detected when the rsi crosses above its 80% line.
And an overbought market signals a bearish trend reversal of the market, that is, a change in market strength from the buyers to the sellers.
I then continued towards the 2hr timeframe, and on this timeframe I decided to place my entry into the market.
And here, I expect to see the market retest this level again, after which I can take my entry into the market.
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 rejection in the market