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.

I then continued my analysis by moving to the weekly timeframe and on this timeframe I could see more market activities.

There are more candlestick on this timeframe than on the monthly timeframe and this is because each candle on this timeframe is formed within the time period of 7days.

On this timeframe, I was able to spot a key level, and this level is a strong level as the market has found it difficult to break through this level.

I then noticed that the market has traded towards this level again and I expect to see a rejection, and on this timeframe I can see the formation of bullish candles which is the rejection I search for.

I then looked carefully and I was able to spot another level and this level will be functioning as a resistance level.

This resistance can be said to be a valid level as the market has made several touches on this level and have been unable to break above it

And getting to the 4hr timeframe I could see lots of noise in the market.

I could feel the presence of the buyers and sellers in the market as they struggle to drive the market to their preferred direction.

And looking carefully at this timeframe, I was able to detect the formation of what we know to be double bottom.

A double bottom is a bullish trend reversal pattern, that signals the strength of the buyers in the market.

And getting to the 2hr timeframe, I zoomed out the price chart to see the overall market, and seeing the formation of a double bottom on a support level gave me a more strengthened bullish bias of the market.

And before taking my entry into the market, I decided to add the rsi indicator as a confluence to my trade, so it can give me a higher trading accuracy.

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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 applied the rsi to the monthly timeframe and on this timeframe, I could see that the rsi has crossed above its 80% line, and this is an indication that the market is being overbought.

An overbought market is one that signals a bearish trend reversal of the market, that is, it signals the weakness of the bulls and strength of the bears.

And getting to the daily timeframe, I noticed that the rsi is moving away gradually from the 20% level.

This is an indication that we expect to see a bullish market and this is in alliance with my analysis using support and resistance strategy.

The 20% line of the rsi indicator indicates a weakness of the sellers and strength of the buyers in the market.

And getting to the 2hr timeframe, I noticed that the rsi has crossed above its 80% line and this is an indication that the market is being overbought.

And with my bulllish bias of the market, I placed my entry on the closest support level to the market and my take profit was placed on the market closest resistance level.

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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 bullish move.