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.
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 the market more clearly, I could see more candles as each candle on this timeframe is being formed within the trading period of 7days.
And looking carefully, I was able to identify another key level and this level is functioning as a support level to the price chart, and the market is expected to be rejected whenever it trades towards this level.
And looking carefully, I could see that the market has tested and respected this level severally and has been unable to break below it.
And moving to the daily timeframe, I could see the market more clearly, I could see the formation of several candles which indicates the presence of the buyers and sellers in the market.
And looking carefully, I was able to identify another key level and this level is functioning as a resistance level to the price chart, and the market is expected to be rejected when it trades towards this level.
And from the above screenshot, we can see that the market has made several touches on this resistance level and has been unable to break above it.
And moving to the 4hr timeframe, I could see the market more clearly, I could see lots of candles in the market which shows the presence of the bears and bulls as they struggle to drive the market to their preferred direction.
And looking carefully, I could see that the bulls are aggressively in control of the market as it kept forming higher highs and higher lows, until it traded towards its resistance level.
And from the above screenshot, I realised that the market has traded towards its resistance level and I expect to see a bearish rejection in the market, and as such I decided to mark out my support level which will function as a support level.
And moving to the 2hr timeframe, I could see the market more clearly but I had a bearish bias toward the market and then I marked out key levels which shows the strength of the bulls in the market.
And before taking my bearish entry into the market I decided to add the rsi indicator as a trading confluence to my trade.
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 add the rsi to the monthly timeframe and on this timeframe I can see that the market is being overbought and an overbought market is understood to mean a bearish trend reversal.
And an overbought market can be detected when the rsi crosses above its 80% line, and this can be understood to show the weakness of the bulls and the strength of the bears in the market.
And moving to the daily timeframe I could see that the market is being overbought and an overbought market signals a bearish trend reversal of the market.
It is a market condition that shows the change in strength from the bulls to the bears, and as such, we can expect to see formation of bearish candles in the market.
I then decided to move to the 2hr timeframe in search of entry into the market since I have a bearish bias of the market
And as such I decided to place my entry on the closest resistance level and my take profit was placed on the closest support level to the market.
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 retracement and a bearish continuation move.