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
After a very dynamic BTC/USD movements and high market volume in the month beginning, in the second half of November we observe a deceleration just above the high from July 2015. How the further situation may develop? You can check it in today’s analysis!
BTC/USD Daily
BTC/USD D1 moved back to the July 2015 high, after strong upward impulse and test of 500USD – but this time the July 2015 high zone (310-317USD) acts as a support which stops further declines since last two weeks. Strong upward movements are blocked by 334USD (the levels seen before dynamic acceleration of BTC/USD rate at the month beginning). It can therefore be assumed, that BTC/USD is now moving in a fairly narrow consolidation range 318-334USD and only moving above or below it will determine where price wants to go.
BTC/USD H4
H4 chart gives us more specific insight to above mentioned consolidation. We can clearly see, that the upper limit is additionally supported by 23.6% Fibonacci retracement (downward move during 10 first sessions in November).
We wait for up or down breakout – before it takes place we can only use range trading (looking for a rebounds inside consolidation).
BTC/USD Monthly
As we approach the end of the month, we should also pay attention to the shape of the monthly candle. Practically no body and very long upper wick shows rejection of bulls’ attempts to put price above significant trading levels. We may ask ourselves a question, whether the candle will not be a signal for increasing supply in December?
