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

jueco (76)modquality controllerin Steem Alliance • 8 months ago

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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.

ANALYSIS USING SUPPORT AND RESISTANCE STRATEGY

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 screenshot above is that of btcusdt on the monthly timeframe as we can see.

This timeframe helps to compress a series of market activities into a specific view, which makes it easier for users to identify the overall market trend.

Also on this timeframe, I can see the market activities more clearly without fakeouts and manipulation.

Inorder to continue my analysis, I descended to the weekly timeframe.

Moving to the weekly timeframe, I can see the market activities more clearly.

I can see more candlestick on the price charts which represents the presence of buyers and sellers in the market.

I was also able to detect a key level on this timeframe, and this level has proven to be a valid level, as it has been severally tested and respected by the market.

And from the screenshot, I can see that the market is actively approaching this level, and when it get to this level, I expect to see a rejection, of which I will use as my entry into the market.

I then moved to the lower timeframe for more market analysis.

And on this timeframe which is the daily timeframe, I can see more market activities, some of which are manipulations from big investors.

I could see the buyers and sellers trying to push price to their preferred direction, and as this happened, I tried to find key levels that will be respected by market price.

Looking very careful, I was able to spot a key resistance level in the market.

This level has functioned properly in the past as a strong resistance level, and seeing price approach it, I anticipate a rejection candle.

I then continued my analysis from the 4hr timeframe, and on this timeframe are so much market noise.

I then looked at the current level of the market and I noticed that the market has been rejected just as I anticipated.

Upon this rejection candle, I can decide to join the market on its bearish move, but to do that, I decided to make use of my rsi indicator as a confluence to my analysis.

I then moved to the 2hr timeframe, as it is on this timeframe I find entry into the market.

Getting to this timeframe, I could see the market more clearly, and I could also see the rejection candles of the market as it approached this level.

With this I made up my mind to enter a sell order but before then, I decided to search for confluence using rsi indicator.

CONFLUENCE USING RELATIVE STRENGTH INDEX INDICATOR

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 apply the rsi indicator to my monthly chart.

On this chart, we can see that the market is being overbought, as it has crossed above the 80% line.

Whenever this happens, it is a signal that the market is about to embark on a bearish trend, and this is in allignment with my analysis using support and resistance strategy.

The weekly chart of btcusdt is also said to be overbought.

As seen above, the rsi has crossed above the 80% line, and this is an indication that the market is about to experience a bearish trend.

This signal is also in allignment with the signal gotten from my support and resistance strategy.

I expect to see a fall in price of btcusdt, then I decided to move to the 2hr timeframe for entry.

Moving to the 2hr timeframe, I noticed that the market was in an oversold region, that is, it will experience a momentary upward movement before the major bearish move.

With that, I placed my entry on the resistance level closest to the price, and my take profit was placed at the closest support level, just as seen above.