Bitcoin Key Points

• Bitcoin's higher time frame support zone.
• Bullish hammer daily candle.
• Intraday retest of short term resistance turned support.

Bitcoin Technical Analysis

Morning team,

I'm changing tack from forex to cryptocurrency today, with everyone's favourite coin, bitcoin (lol), catching my eye.

All of the major forex brokers now offer some sort of Bitcoin CFD market to clients and you should have no problem trading them, just like any of the other forex, indices or commodities markets that I write about on this blog.

Now, the higher time frame charts from my MT4 platform are a bit patchy because forex brokers close on weekends, while as we know, cryptocurrency trades 24/7. You can obviously use TradingView to get a cleaner feed, but for the higher time frame zone that I'm trying to show, my broker's charts do the job.

Take a look at the daily BTC/USD chart below:

After bitcoin found resistance, it has been trending lower for a week or so now. However, you can now see that price is finding support at a pretty clear, higher time frame support/resistance zone.

The daily candle has also just closed and formed a hammer. A candle pattern that when combined with a strong support zone, can be used to indicate a possible bullish reversal.

With that in mind, lets now zoom into an intraday chart and take a look at the BTC/USD hourly:

When judging how important a support/resistance zone is, a big part of its strength comes from how hard price rejects off the level. On the intraday chart, you can see just how pronounced this particular bounce off daily support has been.

That V shape looks mighty strong to me!

From here, I've marked the first area of short term resistance that has been retested as support. My way of clearly defining an entry level that will offer a good risk:reward.

If you're a conservative trader, then your stops go below the daily zone. If you're an aggressive trader, then your stops go below the intraday zone. I'll leave how you choose to trade this setup, in your own capable hands.

Best of probabilities to you,

Dane.

Upcoming Economic Releases

USD Prelim UoM Consumer Sentiment

While only a medium impact release, it always seems to have some sort of attention paid to the number. Just be aware of your calendar.

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@forexbrokr | Steemit Blog

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