Hello everyone this is my idea for Bitcoin ..
Few things to keep in mind … I am doing a study correlation between DXY , EURUSD , SP500 and Bitcoin
I believe that Bitcoin is about to do a Very deep correction for following reason ..
DXY is almost finding a bottom .. EURUSD is approaching a very strong resistance .. Sp500 is looking toppy ..
I will attach charts of DXY , EURUSD , Sp500 below ..
Same time by a RSI Divergence module on monthly time frame Bitcoin is testing important module levels
I will it below …
But as a trader we stick to our plan from support levels and resistance .. and where to execute best entries and exist
and to analyze where price could be going however we should always look at the bigger picture to make an assumption of
where price could go ...
On 4 hour time frame .. price is testing very important level and looks toppy which is the red line Resistance ..
So our idea is to find out where to buy and sell ...
As a seller you wanna sell from red line to target green line and orange line as long as price doesn't close above Red line 4 hour candle ..
As a seller you wanna sell if 4 hour candle close below green line to target Area between 12-14k .. as long as no 4 hour candle close
above Green line ..
As a buyer you wanna buy from orange line to target red line as long as price doesn't close below orange line ..
As a buyer you wanna buy from green line to target red line as long as price doesn't close below green line ..
few things to point out ..
If Green line breaks ..
Price could make a head and shoulder pattern on daily time frame ... and same time Price would break
a green line which is very important support and if price break it and test it a pattern unfold which is head and shoulder
same time Price breaks the green line in RSI which is very bearish .. Just a thought
daily time frame chart below explains my idea
Same time on Monthly time frame price is testing a very important RSI line .. which could Reject strongly ( sell off )
Below if you see Dxy chart .. Price is testing very important support .. which is broken downtrend became support
This support did break before but it was fake breakout .. Lets see if it holds ..
Why Dxy is important because .. Bitcoin will tank if DXY rise
Below if you see EURUSD chart ... Price is testing very important Resistance sell barrier level ... which price could get rejected
and same time Price is very overbought and due for correction ..
EURUSD is very important for DXY ... because DXY rise .. depend a lot on this pair
Below if you see Sp500 Chart you will notice price is looking toppy .. and any moment ready to correct
Price did break important resistance level .. but now forming a small channel if it breaks to downside ...
This will effect Bitcoin a lot ..
Few things to keep in mind … I am doing a study correlation between DXY , EURUSD , SP500 and Bitcoin
I believe that Bitcoin is about to do a Very deep correction for following reason ..
DXY is almost finding a bottom .. EURUSD is approaching a very strong resistance .. Sp500 is looking toppy ..
I will attach charts of DXY , EURUSD , Sp500 below ..
Same time by a RSI Divergence module on monthly time frame Bitcoin is testing important module levels
I will it below …
But as a trader we stick to our plan from support levels and resistance .. and where to execute best entries and exist
and to analyze where price could be going however we should always look at the bigger picture to make an assumption of
where price could go ...
On 4 hour time frame .. price is testing very important level and looks toppy which is the red line Resistance ..
So our idea is to find out where to buy and sell ...
As a seller you wanna sell from red line to target green line and orange line as long as price doesn't close above Red line 4 hour candle ..
As a seller you wanna sell if 4 hour candle close below green line to target Area between 12-14k .. as long as no 4 hour candle close
above Green line ..
As a buyer you wanna buy from orange line to target red line as long as price doesn't close below orange line ..
As a buyer you wanna buy from green line to target red line as long as price doesn't close below green line ..
few things to point out ..
If Green line breaks ..
Price could make a head and shoulder pattern on daily time frame ... and same time Price would break
a green line which is very important support and if price break it and test it a pattern unfold which is head and shoulder
same time Price breaks the green line in RSI which is very bearish .. Just a thought
daily time frame chart below explains my idea
Below if you see Dxy chart .. Price is testing very important support .. which is broken downtrend became support
This support did break before but it was fake breakout .. Lets see if it holds ..
Why Dxy is important because .. Bitcoin will tank if DXY rise
Below if you see EURUSD chart ... Price is testing very important Resistance sell barrier level ... which price could get rejected
and same time Price is very overbought and due for correction ..
EURUSD is very important for DXY ... because DXY rise .. depend a lot on this pair
Below if you see Sp500 Chart you will notice price is looking toppy .. and any moment ready to correct
Price did break important resistance level .. but now forming a small channel if it breaks to downside ...
This will effect Bitcoin a lot ..