Namaste to all #Hive and #Leo finance community members. 🙏
For some time now I have been continuously sharing my Technical Analysis of BTC/USD ( #Bitcoin against U.S. Dollar ) with you all. And since then by the grace of lord Shri Krishna, we are continuously doing good in trading. Still, my advice and request is to first thoroughly understand the points discussed in each of my analysis blogs well and then based on your understanding and risk appetite trade accordingly.
Click here to go through my previous analysis.
Image by vectorjuice on Freepik | Edited on Canva
Important points that we discussed in our previous analysis are:
- On September 14th candle managed to close above our ket level of 26500. After this, we saw a follow-up movement which then took the price to 27515.
- After breaking above 26500, technically the price should have reversed from 26750, which means price trading below 26500 will not be a good sign for this up move.
- Bitcoin may resume its uptrend above 27515, also unless the price falls below 26300, any kind of selling will not be technically correct.
In the last few days price has moved quite accurately and respected our levels. We saw the price falling below 26500 and taking support at 26000. After this buyers made another attempt to drive up the prices but it got rejected again and took support at 26700. However, Friday's candle is called the inside bar candle which symbolizes the indecision between buyers and sellers. This means short-term traders can trade on breaking of this candle's range.
Let us now take another deep dive into the bitcoin (BTC/USD) chart and see where it could be headed in the coming days.
Image source Tradingview | 1 Day time frame chart.
In the image shown above you can see a thick white trendline which basically shows a price trend, where before breakdown which is indicated by a small white cross sign on the chart above, the price was taking support of this thick white trendline, and in the price action you are seeing after the breakdown price start taking resistance of the same trendline. Technically this structure is weak unless the price breaks above this trendline and one key level of 28200.
Now let's understand the strategy to trade bitcoin for the next few days.
Technically the price will remain under pressure until it breaks above the level of 28200. However, I can go long for a smaller target with a small quantity if the price breaks above its previous swing high which is at 27515.
But unless the price breaks 28200 on the upside, buying will be like trading against the trend, which technically should not happen.
On the contrary, 26500 and then 26000 will act as immediate important support levels. I would not like to sell as long as the price remains above these levels.
It would be necessary for the price to break out of this range for any major sideways move.
Because, whenever the price breaks, everyone will start following the trend in FOMO (Fear of missing out) Which eventually will change the broader psychology of market participants, and then you may not even get a chance to enter or exit at the right place and time.
And as always, Instead of thinking like a buyer or a seller, think like an opportunist. No matter which direction the price moves, we have to confirm the follow-up movement before placing any order.
Thank you for reading this blog!
"Keep learning, earning, and smiling"
आज के लिए बस इतना ही।
🙏