Has Price Reversed as Expected? - Technical Review [Burnsteem25]

Hello Steemians, I trust we are all doing great today. The crypto market has recorded some gains over the past few days and I know we are excited to see this rise. In this study, we will dive straight into the current situation of the market to know if this is truly the reversal confirmation we are expecting.

In the previous analysis carried out, we predicted a possible breakout above the range on the Daily chart for price to retest the resistance at $30k. We will see how price is reacting to that. This study will be carried out as usual on Tradingview.com.

We will carry out a multi-timeframe analysis on BTC/USD for this study. BTC dominates the crypto market and every cryptocurrency follows the direction of BTC.

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Please understand that the higher timeframes are best for identifying the direction of price. Looking at the monthly chart above, we can see a clear rejection at the major support level at $19k. Price broke this support level but failed to close below it which shows rejection of the support.

Also, the next candle closed bullish above the support level which shows the dominance of buyers in the market. We hope to see more increasing buying pressures to push price to the resistance level at $30k.

Let's look at the weekly chart to understand the candlestick dynamics at the support level.

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On the weekly chart, we can see a clearer picture of the candlesticks at the support level. Notice how price failed to close below the support level showing strong rejection of the support. We can also see the candlesticks closing higher than the previous close.

From all indications, the buyers are winning this race and are taking control of price. This little sign will trigger the emotions of traders to a bullish side and this will push price to the next resistance at $30k.

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On the daily chart, we can break things better to our understanding. The dynamics of the monthly and weekly charts can be broken down here. We can see a price range created at the support level showing price accumulation and rejection at the support.

Currently, price has broken out of the range and has also retested the broken range which is a confirmation of a breakout discussed in the last analysis. Also, we can price break above the 50MA which is a strong reversal signal. Hopefully, increasing buying momentum pushes price to the resistance at $30k.

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The chart above shows the first scenario of price movement. The emotions and psychology of traders plays important role in the movement of price. The price increment will trigger the emotions of traders to the positive side and this will increase the buying pressures in the market. If this happens, we can see price to the $30k level.

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The next scenario is to see price back in the range. This little price movement can be a fakeout and price manipulation by the big players. As we discussed in the last section, so many retail traders will be tricked into opening buy positions with the hope that price is reversing with stoplosses placed in the range, only for price to reverse back in the range hitting their stoplosses. This is a common scenario in the market and we have to be about trading breakouts.

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This is the end of this study. We will be back at the end of the week to see how the weekly candle closed. Only then we can analyze the market again for potential price movement. Remember to follow your trading plan and make good investment decisions. The next analysis will be focused on Steem price.

Note: This analysis is based on my personal opinion and knowledge. This is for educational purposes and not a piece of investment advice. Please do your own research and invest what you can afford to lose. The crypto market is highly volatile and risky.

Cc: @reminiscence01