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

Source

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 as it was unable to break above it.

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 bulls are in control of the market as it kept forming higher highs and higher lows, and also as it broke above its resistance level.

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

And getting to the 2hr timeframe with my bullish bias of the market, I could see the bullish momentum of the market, as the bulls are still very much active in the market.

And looking carefully, I was able to identify another key level using a diagonal trend line, which I will use in placing my entry.

And before then, I decided to search for confluence using the 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 also noticed that the market has crossed above its 80% line.

And this is an indication that the market is being overbought and an overbought market signals a bearish trend reversal, 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.

Here, I decided to place my entry in this diagonal support level I detected, and my take profit was placed to give a risk to reward of 1:3.

---

---

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 retracement and a bullish continuation move.