Pullback before 7200
Hey guys, a quick update from my previous post where I talked about the Weekly chart based on my algo. In that I was bullish, still am. Let me explain what how I see the H4 chart. Let's begin.
Key Indicators at H4:
1. Stoch RSI is going downward but has yet to touch the midpoint at 50. this is expected from a pullback.
2. Volume: There is a big red bar showing selling pressure after rejection at 6957. I would be cautious about this if 3 red bars appear consequently.
3. RVGI: Trend is still strong favoring upward movement.
4. Chart pattern: W pattern with neckline approx. 6360 acts as support and potential area for bounce higher.
5. Liquidity zone: The previous price action where we dipped to 58++ was a liquidity tap but we didnt break below. This is important because this was the .50fib where we began the price rally from 3800 to 7000.
Holding this means a good bullish movement is maintained.
6. LogMACD:Hidden bullish divergence still evident in H4 and bullish convergence at D1.
7. Sentiment and News: The corona crisis has had the maximum economic shock to the US markets since 2 weeks now and people aren't as flustered now. Also the US government have passed stimulus packages with more on the way plus dont forget the Digital dollar Bill being discussed now. That is bullish for me for all crypto assets imho.
Invalidation: If we touch below 5800 then we may range in the 5k to 6k prices.
Personal Bias: Bullish to 7200
Time frame: Weekly
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Safe Trades all 👍
Key Indicators at H4:
1. Stoch RSI is going downward but has yet to touch the midpoint at 50. this is expected from a pullback.
2. Volume: There is a big red bar showing selling pressure after rejection at 6957. I would be cautious about this if 3 red bars appear consequently.
3. RVGI: Trend is still strong favoring upward movement.
4. Chart pattern: W pattern with neckline approx. 6360 acts as support and potential area for bounce higher.
5. Liquidity zone: The previous price action where we dipped to 58++ was a liquidity tap but we didnt break below. This is important because this was the .50fib where we began the price rally from 3800 to 7000.
Holding this means a good bullish movement is maintained.
6. LogMACD:Hidden bullish divergence still evident in H4 and bullish convergence at D1.
7. Sentiment and News: The corona crisis has had the maximum economic shock to the US markets since 2 weeks now and people aren't as flustered now. Also the US government have passed stimulus packages with more on the way plus dont forget the Digital dollar Bill being discussed now. That is bullish for me for all crypto assets imho.
Invalidation: If we touch below 5800 then we may range in the 5k to 6k prices.
Personal Bias: Bullish to 7200
Time frame: Weekly
If you like my piece, even if you disagree, please do Like and Subscribe. Thanks 🙏🙂
Safe Trades all 👍
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