Topdown Analysis Of BTCUSDT Using Support And Resistance Strategy And RSI Indicator As A Confluence

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Hello great minds,

It is a great opportunity to appear before you all today to share my analysis on bitcoin.

I believe you are all doing perfectly fine and are enjoying your activities in the community as you actively share in steemit promotion across various social media platform.

Bitcoin as we know it, is the father of all other cryptocurrency and it is worth carrying an analysis on, since it is the driver of all other cryptocurrency in the cryptospace.

Today, I will sharing my analysis of btcusdt and I will be beginning from the monthly timeframe.

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ANALYSIS USING SUPPORT AND RESISTANCE STRATEGY

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My analysis often begin from the higher timeframe and it moves to the lower timeframe.

On the higher timeframe like the monthly timeframe, I identify market trends, and on other timeframe I search for key market levels and also search for entries into the market.

The above screenshot is that of btcusdt on the monthly timeframe as we can all confirm.

And from the above screenshot, we can see that there are less candles on this timeframe, and this is because each candle formed on this timeframe takes an activity period of one month.

Also on this timeframe, we can notice that the market trend is easily identified, and from the screenshot above, we can see that Bitcoin market is bullish overall.

And getting to the weekly timeframe, I could see more market activities than on the monthly timeframe, and this is because each candle on this timeframe was formed within the timeframe of 7days.

And looking carefully at this timeframe, I was able to identify a key level and this level was previously functioning as a resistance level to the market price.

Normally, the market is expected to be rejected when it trades towards this level but whenever it happens that the market breaks above, it can be referred to be a trend continuation market.

And getting to the daily timeframe, I could see more noise in the market as the buyers and sellers are showing their strength in the market.

And looking at the market, I could see that the market has been rejected from the support level I marked earlier, and this is an indication that the buyers are more than willing to drive the market higher.

And on this timeframe too, I was able to identify another level, and this level will be functioning as a resistance level to the market, and the market has been unable to break above this resistance level.

On the 4hr timeframe, I could see how noisy the market is, I could feel the presence of buyers and sellers and also the presence of market makers.

And from the screenshot, I noticed that the bulls are in control as the market kept forming series of higher highs and higher lows, as it gradually approaches the resistance level I spotted out.

With this, my bullish bias of the market has become strengthened and I decided to move to the 2hr timeframe in search of entry into the market.

And getting to the 2hr timeframe, I was able to zoom in so as to see the market more clearly.

And looking at the market, I noticed that it has broken above a 2hr resistance level, and I expect to see a retracement of the market into this level and when this happens, I expect the market to continue its bullish move.

And before entering the market, I decided to search for trading confluence using the relative strength index indicator.

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CONFLUENCE USING RELATIVE STRENGTH INDEX INDICATOR

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The relative strength index indicator is an indicator that helps to identify overbought and oversold market.

When a market is spotted to be overbought, it is a bearish trend reversal signal and when it is oversold, it is a bullish trend reversal signal.

An overbought market can be spotted when the rsi crosses above the 80% line and an oversold market is detected when the market crosses below the 20% line.

I then decided to move to the monthly timeframe to add the relative strength index indicator, and on this timeframe, I realised that the market is being overbought and an overbought market is being detected when the rsi crosses above its 80% line.

An overbought market is one that signals a bearish trend reversal of the market, that is, a change in market trend from the uptrend to the downtrend.

With this, I decided to check on the daily timeframe for more analysis.

On the daily timeframe, I realised that the market is also being overbought, and an overbought market signals a bearish trend reversal of the market.

It shows the weakness of the bulls and strength of the bears in the market, and with this analysis, I decided to check on the 2hr timeframe for more market activities.

Getting to the 2hr timeframe, I realised that the market is being overbought, and an overbought market signals the weakness of the bulls.

And from the above screenshot, we can see that the market has not traded towards my support level.

I then decided to place by buy order on the closest support level on the market and my take profit was placed on the closest resistance level of the market.

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CONCLUSION

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Bitcoin is the father of all cryptocurrency and it is the driver of all other altcoins in the cryptomarket.

I have shared my analysis on the market and I expect to see a momentary bearish retracement and a bullish continuation move.