BTC/USD [Market Overview] - Daily TF with Price Levels
Updated
Welcome dear readers who love to read some technical analysis and structure their trade logic and entries a bit more. We will be using the Project Eagle Eye indicator to get fibonacci target ranges based on the range swings and also take the automatic gann box lines as an indication for support and resistance. Furthermore, the use of a logarithmic MACD over the standard one is that the levels stay relatively the same after a parabolic move and it's easier to see how much something is oversold in logarithmic terms, if you haven't try out the LMACD and see what kind of results you get, it's mostly about how it scales vertically with MACD and Signal Line.
For the RSI I chose a period of 7 and 28 to get a better understanding of the larger trend and the faster moving one. The RSI(7) just moves a bit faster and shows me minor divergences which are sometimes not visible on RSI(14) which is the standard default setting.
[ The Current Macroview on BTC Price Action ]
The price action has consolidated in a major triangle for several months to be precise 89 days until it broke down and this current move puts alot of pressure on the buyers. The lower support floor of this triangle is around 9350 USD so if price is able to retrace upwards it will be a level where many try to get out even. Measuring the largest move inside the triangle (-34.50%) and measuring this move down from break-out point yields us a major target of 6178 USD which also corresponds to break-down level to 3xxx's. If D2 38.2% fails to support then this major target become the next price to look for.
The LMACD shows us that there is a decline in selling as the histogram is changing from red to pink. Be aware that it can also get rejected and continue going down, for now this shows us there is still uncertainty whether we go down more or not. What we want to look for is a bullish cross on LMACD on 12H (Daily can sometimes lagg too much behind) and see the Signal & MACD line go above 0 which will show bullish price-action.
Both RSI 7 & 28 are still below the white downtrend line and haven't broken up into a new trend of strength, closing longs on this line is also adviced before any major break-up is present.
Looking at the smaller timeframes and even on daily we can see a very small bullish div, this could be a small indication for a move up on smaller TF but to have a good signal to long we want to have a clear bullish div on Daily timeframe where price goes lower but RSI makes a higher low.
Additionally, the RSI 28 has still more room to go down until it tests the lower horizontal support line where the uptrend took off, combine that with price being below resistance D2 50% (hard to see but it's below the measured move) and still floating above support it's better to wait.
In short,
We would want to see BTCUSD go down to our D2 38.2% - 7231 USD support fib and make clear visible bullish divergence so that we have some confidence this last dump was on low strength and there is good likelihood for reversal upwards. The gann lines also show support at this price level which makes it a more respected area of support.
If you like reports like this PLEASE leave a like and comment what you think will happen or could be better,
it takes time to write all of this and I'm not really a fan of writing but if you can support me with a simple like that would already help me out alot and motivate me to do this more often.
Focus on clarity of mind, think about your system and have great trades,
-TheTrex (also on Telegram)
For the RSI I chose a period of 7 and 28 to get a better understanding of the larger trend and the faster moving one. The RSI(7) just moves a bit faster and shows me minor divergences which are sometimes not visible on RSI(14) which is the standard default setting.
[ The Current Macroview on BTC Price Action ]
The price action has consolidated in a major triangle for several months to be precise 89 days until it broke down and this current move puts alot of pressure on the buyers. The lower support floor of this triangle is around 9350 USD so if price is able to retrace upwards it will be a level where many try to get out even. Measuring the largest move inside the triangle (-34.50%) and measuring this move down from break-out point yields us a major target of 6178 USD which also corresponds to break-down level to 3xxx's. If D2 38.2% fails to support then this major target become the next price to look for.
The LMACD shows us that there is a decline in selling as the histogram is changing from red to pink. Be aware that it can also get rejected and continue going down, for now this shows us there is still uncertainty whether we go down more or not. What we want to look for is a bullish cross on LMACD on 12H (Daily can sometimes lagg too much behind) and see the Signal & MACD line go above 0 which will show bullish price-action.
Both RSI 7 & 28 are still below the white downtrend line and haven't broken up into a new trend of strength, closing longs on this line is also adviced before any major break-up is present.
Looking at the smaller timeframes and even on daily we can see a very small bullish div, this could be a small indication for a move up on smaller TF but to have a good signal to long we want to have a clear bullish div on Daily timeframe where price goes lower but RSI makes a higher low.
Additionally, the RSI 28 has still more room to go down until it tests the lower horizontal support line where the uptrend took off, combine that with price being below resistance D2 50% (hard to see but it's below the measured move) and still floating above support it's better to wait.
In short,
We would want to see BTCUSD go down to our D2 38.2% - 7231 USD support fib and make clear visible bullish divergence so that we have some confidence this last dump was on low strength and there is good likelihood for reversal upwards. The gann lines also show support at this price level which makes it a more respected area of support.
If you like reports like this PLEASE leave a like and comment what you think will happen or could be better,
it takes time to write all of this and I'm not really a fan of writing but if you can support me with a simple like that would already help me out alot and motivate me to do this more often.
Focus on clarity of mind, think about your system and have great trades,
-TheTrex (also on Telegram)
Note
BTCUSD 12H, Price action is slowly creating bullish divergence on the larger timeframe 12H in this case. We are also seeing a descending channel which could be seen as a bullflag as price hasn't dropped below current low. If price is able to break up from this bullish channel we could see it test it the high of 8500 as result of bullish divergence and then if price starts to fall again it need to remain above the local range fibonacci level of 8061 and finally break above 8500 to trend higher (8800-9100) or if strong enough 9770 which is a major range fib and would prove this could been an attempt to accumulate more BTC.If price fails current low we should see 7500-7235 as direct lower support and this needs to be range were daily will also paint a clear bullish divergence.
Note I disabled the labels for Eagle Eye to make it more organized, normally it shows you all the price levels of the fibs.
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