Time for the BTC Bounce???
Updated
Despite the BTC short over the weekend, there is significant support in the area of $3465. Thus, a probable bounce is sure to come in the next 48 hours to around $3600.
Bearish Sentiment:
Make no mistake we are in a bearish trend downward, as depicted by the downward diagonal trend lines, thus we may sink lower (roughly %32 probability). The difference between the red and white downward diagonal trend lines are the outer and inner price lines, key battle zones for a bull trap. The horizontal red lines depict key support for any further drops downwards. The next support is in the area of $3215, then a lower low to roughly $2800-$2900. The price action will chop around $2743-$5450 until September time line, as shown in my previous Long Term BTC Chart Analysis (tradingview.com/chart/BTCUSD/mq35xnzS-Long-Term-Trend-For-BTC/).
Bounce Opportunity:
Take a look at the divergence playing out in the hourly RSI, along with price action seeming to hold up. When the RSI breaks out of the downward sloping trend, and above the 50 mark, this will indicate a short term long opportunity. Along with the RSI, the SMII is beginning to slowly tick upwards, giving the initial opportunity to enter the bounce. From my own opportunities, I have found that entering on the 5 minute time frame for a daily trade will improve the probability for the best entrance opportunity. After entering the long position, target the 100 EMA on the hourly to take profits, with a stop loss slightly below the daily low.
All information I post is only to give perspective on the technical analysis practiced. It is only educational, and not advice on buying or selling.
If you like this analysis, please like and comment on your thoughts if you please. I sincerely appreciate you taking the time to view and give feedback on the perspective presented! Happy Trading :)
Bearish Sentiment:
Make no mistake we are in a bearish trend downward, as depicted by the downward diagonal trend lines, thus we may sink lower (roughly %32 probability). The difference between the red and white downward diagonal trend lines are the outer and inner price lines, key battle zones for a bull trap. The horizontal red lines depict key support for any further drops downwards. The next support is in the area of $3215, then a lower low to roughly $2800-$2900. The price action will chop around $2743-$5450 until September time line, as shown in my previous Long Term BTC Chart Analysis (tradingview.com/chart/BTCUSD/mq35xnzS-Long-Term-Trend-For-BTC/).
Bounce Opportunity:
Take a look at the divergence playing out in the hourly RSI, along with price action seeming to hold up. When the RSI breaks out of the downward sloping trend, and above the 50 mark, this will indicate a short term long opportunity. Along with the RSI, the SMII is beginning to slowly tick upwards, giving the initial opportunity to enter the bounce. From my own opportunities, I have found that entering on the 5 minute time frame for a daily trade will improve the probability for the best entrance opportunity. After entering the long position, target the 100 EMA on the hourly to take profits, with a stop loss slightly below the daily low.
All information I post is only to give perspective on the technical analysis practiced. It is only educational, and not advice on buying or selling.
If you like this analysis, please like and comment on your thoughts if you please. I sincerely appreciate you taking the time to view and give feedback on the perspective presented! Happy Trading :)
Comment
We got the bounce, follow the white and red diagonal resistance lines for a retest. $3600 is a strong resistance in the meantime. Also, the RSI divergence gave us the key signal for the entrance. Keep an eye for the bearish divergence when key resistance is met. tradingview.com/chart/owF9o7Mk/
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