BTC/USD - Levels To Watch
Updated
What's up traders,
Here we have BTC/USD on the 4H chart.
BTC/USD appears to be in a corrective move. Price has recently been trading within a rangebound structure, between a horizontal support zone at 9300, and a upper horizontal resistance at 14100.
Price is picking up momentum to the downside. Price is weakened and there is a possibility of testing the bottom support boundary at 9300. If this happens it would show a weakness in the pair from a technical perspective.
I am expecting Bitcoin to either have a 3 wave up move from current levels, or a correction to the long term structure before the upside.
This trade could play out in 2 days, I have outlined these below:
-Price finds support at the minor consolidation zone, at 11300. If price successfully supports here, it would show a massive enthusiasm for Bitcoin, and this would ignite a very strong up move, which will bring price to the target at 14730.
-Price breaks down, hits the longer term horizontal support zone at 9300 before retesting, and coming back to the upside. If this set up plays out, I am expecting the up move to the upside horizontal target zone.
Bare in mind, the first scenario above is preferred to the second. The first scenario indicates that there is momentum in the short term, which is what Bitcoin needs. If this set up plays out, I believe we will need a significant amount of volume.
If price retests the lower support, it will still bounce and go to the upside. But, to reach the horizontal upside target at 14100 might prove more difficult, as we would need significant bullish participation for an extended period of time to reach the level.
I will updating this analysis if it receives more than 40 likes.
Here we have BTC/USD on the 4H chart.
BTC/USD appears to be in a corrective move. Price has recently been trading within a rangebound structure, between a horizontal support zone at 9300, and a upper horizontal resistance at 14100.
Price is picking up momentum to the downside. Price is weakened and there is a possibility of testing the bottom support boundary at 9300. If this happens it would show a weakness in the pair from a technical perspective.
I am expecting Bitcoin to either have a 3 wave up move from current levels, or a correction to the long term structure before the upside.
This trade could play out in 2 days, I have outlined these below:
-Price finds support at the minor consolidation zone, at 11300. If price successfully supports here, it would show a massive enthusiasm for Bitcoin, and this would ignite a very strong up move, which will bring price to the target at 14730.
-Price breaks down, hits the longer term horizontal support zone at 9300 before retesting, and coming back to the upside. If this set up plays out, I am expecting the up move to the upside horizontal target zone.
Bare in mind, the first scenario above is preferred to the second. The first scenario indicates that there is momentum in the short term, which is what Bitcoin needs. If this set up plays out, I believe we will need a significant amount of volume.
If price retests the lower support, it will still bounce and go to the upside. But, to reach the horizontal upside target at 14100 might prove more difficult, as we would need significant bullish participation for an extended period of time to reach the level.
I will updating this analysis if it receives more than 40 likes.
Note
Price is showing some nice bullish pressure after breaking the support. On the way to the second support zone it looks like a nice bull base, where (At least for the short term) we will see the upside a bit more.
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