TRADE BTC OPTIONS THANKS TO TOPOPTION
For the technical analysis I will use primarily:
- Trend lines
- Resistance and support levels
- Classic TA basic formations (triangles, wedges, flags)
- Basic Price Action patterns (pin bar, inside bar, outside bar)
- Fibonacci retracement to determine potential support and resistance levels
BTC/USD Monthly and W1
In last week’s analysis I drew attention to the monthly candle that was missing then one day to the closing. You can regard it as a pin bar under two important resistance – in the long term we should consider strong chance of declines. It is true that candle has a slightly longer body than week ago, but a false breakout of 400USD and 500USD levels should give us a lot to think through.
When it comes to weekly chart, I mentioned that before leaving the surroundings of 317.00-375.00 range, we should abstain from any decision. Price finally break above the consolidation, but so far stopped below important resistance (400.00), which we will discuss in more detail at the lower TFs.
BTC/USD D1
Base that was building from the end of October – and throughout whole November – provided scope for stronger increases and for approaching round level of 400.00. Sunday closed however in the form of a doji candle (with longer upper wick) almost perfectly under round resistance. It may suggest market indecision and urge to retrace current appreciation.
BTC/USD H4
Last week I was paying attention to the area surrounding the 370.00 and 373.00 (38.2% Fibonacci retracement). I would suggest that if purchase signal after re-test from the top occurs we will play long positions. Such signals activated itself (blue rectangle), providing a move to next resistance zone.
Currently the price has to fight with more serious cap. This refers to the 400.00USD and 50% Fibonacci retracement (398.19USD). Price tested the zone, but so far unsuccessfully. Currently we should wait for H4 candle close (it has a really long upper wick). If it closes in the current form, then we will can talk about the short-term double top and potential short positions under 400.00.
It is worth to indicate that H1 shows downward inside bar – a long green candle, which engulfs the body of the second, supply candle.
