My technical analysis and trading of the BTCUSDT 4H chart

I have had my eyes on the BTCUSDT chart for some time now and I did some technical analysis around 10pm GMT yesterday.

Adapted from Binance

I noticed an uptrend in the BTC chart using the 4H time frame. In order to confirm this, I checked the daily time frame and it was confirmed that Bitcoin was in an uptrend.

I drew a trend line as you can see in the chart above. This trend line served two purposes. First, to confirm further that the market was in an uptrend. Secondly, it was used to determine the various support levels as the market moved upwards. I had to determine the support level in order to decide when to enter the market. I watched as it bounced off several support levels until it got to the most recent support level.

As soon as I saw the pin bar candle stick form at the support level, I entered the market. I took my trade at the bitcoin price of 27,444 while my stop loss was set at 27,169, which was at the support level. My take profit was put at 27,950 where I expect there will be some resistance.

As you can see from the photo above, I also drew a horizontal line to determine support and resistance levels. Most times, previous resistance levels become support levels. That was what happened in this chart. At a particular price range, there was resistance, consolidation and support. That is a strong indication. So when the bitcoin price went down to that level, I knew that it would bounce back up. It eventually did.

When I do my analysis, I also consult higher time frames. So I looked at the BTCUSDT chart on the daily time frame. It showed that BTC was in an uptrend. So that was an extra confirmation for me. I drew my trend line and horizontal line on the daily time frame, just like I did with the 4H time frame. From the indications, putting a buy order seemed like the right thing to do.

Adapted from Binance

That is my analysis of the BTCUSDT chart. Thanks for reading.