Technical analysis update: BTCUSD (16th November 2021)
Updated
BTCUSD continues to move sideways within rectangle formation as bullish trend is losing momentum and becoming neutral. Bitcoin currently trades around 60 900 USD pricetag; and we are currently bearish on BTC as technical analysis on daily time frame supports this thesis. We expect eventual breakout below the neutral zone. Additionally, we expect such occurence to be accompanied by further selling pressure and possible beginning of bearish trend. If bearish breakout occurs then we expect price to test 55 000 USD.
Volume decreases as BTC continues to move sideways - which suggests that new buyers are increrasingly harder to find.
Technical analysis - daily time frame
MACD, Stochastic and RSI are all bearish. ADX contains low value which suggests neutral trend. However, we expect bearish breakout from neutral zone and resumption of selling pressure.
Technical analysis - weekly time frame
RSI is just slightly below overbought zone and it manifests sideways movement. Inability to pierce through 70 points might suggests that bullish trend peaked already. However, MACD and Stochastic still remain bullish. ADX suggests very weak trend which coincides with daily time frame.
We would like to note it is possible that double top is forming in BTCUSD. Because of that we think investors should be very cautious.
Support and resistance
Major resistance sits at 69 000 USD. Resistance 1 lies at 64 895 USD while Support 1 lies at 59 603 USD. Support 2 sits at 52 956 USD and Support 3 appears at 42 900 USD. Then Support 4 sits at 39 573 USD. Major support level can be found at 28 600 USD.
Disclaimer: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as basis for taking any trade action by individual investor. Your own due dilligence is highly advised before entering trade.
Volume decreases as BTC continues to move sideways - which suggests that new buyers are increrasingly harder to find.
Technical analysis - daily time frame
MACD, Stochastic and RSI are all bearish. ADX contains low value which suggests neutral trend. However, we expect bearish breakout from neutral zone and resumption of selling pressure.
Technical analysis - weekly time frame
RSI is just slightly below overbought zone and it manifests sideways movement. Inability to pierce through 70 points might suggests that bullish trend peaked already. However, MACD and Stochastic still remain bullish. ADX suggests very weak trend which coincides with daily time frame.
We would like to note it is possible that double top is forming in BTCUSD. Because of that we think investors should be very cautious.
Support and resistance
Major resistance sits at 69 000 USD. Resistance 1 lies at 64 895 USD while Support 1 lies at 59 603 USD. Support 2 sits at 52 956 USD and Support 3 appears at 42 900 USD. Then Support 4 sits at 39 573 USD. Major support level can be found at 28 600 USD.
Disclaimer: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as basis for taking any trade action by individual investor. Your own due dilligence is highly advised before entering trade.
Trade active
Idea was updated in the following post: 
Trade closed: target reached
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