Hi friends! Welcome to this update analysis on Bitcoin! Let's get right to it! looking at the four hour chart, you can see that BTC has rallied through the heavy overhead resistance at the 78.6% retrace, and is now trading inside of the "buy zone." With that said, it's important to keep in mind that the 78.6% retrace is a critical support/resistance level. That's why I made it the beginning of the buy zone. If BTC can hold above the 78.6% retrace, and therefore above the huge pivot lows form 1/17 and 2/25, we will have essentially defined that level as powerful new support. That's why I made it the bottom of the buy zone. Now with that said, I'm a bit concerned about the rapid rally into the buy zone, because we're somewhat overextended. If BTC falls back below the buy zone, it will have been a failed breakout above the 78.6% retrace, and thus, a failed attempt to stay inside of buy zone territory. If BTC can't stay above the 786, and confirm sustained trading in that level, then we don't have a buy signal.
As I write this, BTC is starting to roll back over toward the 786. So, it will be very important to see if BTC can hold that level. BTC is now falling back below the buy zone, so this could be a failed breakout into the buy zone territory. There hasn't been any confirmation in the buy zone, so there is no confirmed signal to buy.
As you can see, I've reduced the "no trade zone," and I've raised the sell zone. If BTC starts to fail here, and if it falls back into the top of the sell zone, I will be salivating at short side trades. The top of the sell zone lines up with the 1200 EMA. Therefore, if we get into the sell zone, that would show that the 1200 EMA has failed to hold as support, and that would be a very bearish indicator. We're almost overbought on the daily RSI, and we're in and out of overbought territory on the 4 hour RSI. Additionally, thers is a bearish divergence on the MACD. So, these developments lead me to believe that we could see a failure to stay inside of the buy zone, which is why I'm not a buyer just yet. I want to see more signs of sustainability and strength (above the 786) and I'm not seeing that just yet. Ideally, we'll see BTC roll back over into the sell zone, so I can light up the sell side trades, and ride the next wave lower.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-
As I write this, BTC is starting to roll back over toward the 786. So, it will be very important to see if BTC can hold that level. BTC is now falling back below the buy zone, so this could be a failed breakout into the buy zone territory. There hasn't been any confirmation in the buy zone, so there is no confirmed signal to buy.
As you can see, I've reduced the "no trade zone," and I've raised the sell zone. If BTC starts to fail here, and if it falls back into the top of the sell zone, I will be salivating at short side trades. The top of the sell zone lines up with the 1200 EMA. Therefore, if we get into the sell zone, that would show that the 1200 EMA has failed to hold as support, and that would be a very bearish indicator. We're almost overbought on the daily RSI, and we're in and out of overbought territory on the 4 hour RSI. Additionally, thers is a bearish divergence on the MACD. So, these developments lead me to believe that we could see a failure to stay inside of the buy zone, which is why I'm not a buyer just yet. I want to see more signs of sustainability and strength (above the 786) and I'm not seeing that just yet. Ideally, we'll see BTC roll back over into the sell zone, so I can light up the sell side trades, and ride the next wave lower.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-
Comment:
The update is here!
