Topdown Analysis Of BTCUSDT Using Support And Resistance Strategy And RSI Indicator As A Confluence

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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.

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ANALYSIS USING SUPPORT AND RESISTANCE STRATEGY

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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 the market more clearly, I could see more candles as each candle on this timeframe takes a trading period of 7days to be formed.

And looking carefully, I was able to identify a key level and this level is functioning as a resistance level to the market price, and the market is expected to be rejected whenever it trades towards this level.

And from the above screenshot, we can see that the market gets rejected whenever It trades towards this level and the most recent bearish rejection of the market was as a result of its rejection from this level.

I then continued my analysis by moving to the daily timeframe and on this timeframe I could see lots of noise in the market.

And looking carefully at the market, I was able to identify another key level and this level is functioning as a support level to the market.

And the market is expected to be rejected whenever it trades towards this level and from the screenshot above, the market has made several touches on this level and has been unable to break below.

And moving to the 4hr timeframe, I could see the market more clearly, I could see the formation of several candles, both bullish and bearish.

And looking carefully, I noticed that the market is ranging, that is, both the strength of buyers and sellers are seen.

And as such, I decided to move to the 2hr timeframe in search of entry into the market

And getting to the 2hr timeframe, I could see more noise in the market, as the buyers and sellers are struggling to drive the market to their preferred direction.

And looking very carefully, I was able to identify another key level and the market has traded towards this level already and i can bearish candles, just as expected.

Then I decided to search for trading confluence using the relative strength index indicator.

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CONFLUENCE USING RELATIVE STRENGTH INDEX INDICATOR

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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 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, the change in market strength from the buyers to the sellers.

And as such, I decided to move to the daily timeframe for more market activities.

And on the daily timeframe, I could see the market more clearly, and I could see that the market is being overbought.

An overbought market is one that signals a bearish trend reversal, and as such, we can expect to see a bearish move on the market.

And then I moved to the 2hr timeframe for entry into the market.

And getting to the 2hr timeframe with my bearish bias, I decided to search for bearish entry into the market.

And as such, I decided to place my entry on the the closest resistance level to the market and my take profit was placed on the market closest support level.

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CONCLUSION

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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 bullish retracement and a bearish continuation move.