BTCUSD Technical Indicators pointing to Oversold - 7200 up next
Updated
I've used the DMI to gauge the upcoming convergence between buying and selling volume, and as highlighted, they're moving closer together quite quickly.
The MFI indicates higher selling volume and highlights oversold conditions at current prices. This is prime time for whales to start feeding.
Last the ParaSAR is displayed to indicate overall strength of the upcoming reversal. The further below current prices the marks are, the stronger the buying trend highlighted by the two technical indicators above.
Lastly, given the justified upward trend, I've applied Fib retracement to justify support and resistance levels. They match up quite nicely. Price will be retested at 7200, and if breached, there's a good chance for it to move up to 7370, at which point non-whale volume could drive price up to 7500+ to match the upward trend.
The MFI indicates higher selling volume and highlights oversold conditions at current prices. This is prime time for whales to start feeding.
Last the ParaSAR is displayed to indicate overall strength of the upcoming reversal. The further below current prices the marks are, the stronger the buying trend highlighted by the two technical indicators above.
Lastly, given the justified upward trend, I've applied Fib retracement to justify support and resistance levels. They match up quite nicely. Price will be retested at 7200, and if breached, there's a good chance for it to move up to 7370, at which point non-whale volume could drive price up to 7500+ to match the upward trend.
Note
Looks like the shock in oil prices has caused a run on the market into cash. As per my previous post, BTCUSD broke through the 6900 support. I have to say - I'm surprised. Based on the MFI, I would've thought unaccounted sales volume would've picked up and propped up the price in a bullish rally. Must have been the news on oil prices that caused overall bearish sentiment.Note
BTC back up to speed and above Fib retracement at 38%. 7200 will be the next resistance level until 7360. Beyond 7360 marks a bull rally to higher end of the upward channel, around 8000-8300.
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