Ironman8848

BTCUSD - D1 - WATCH THE CLOUDS !

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
Good morning, today we are going to look at the daily picture again.
Indeed, as you clearly can see on this chart, the bottom of the clouds in this time
frame, worked, once again perfectly well in rejecting the breakout attempt with
an intraday low, below the clouds @ 39573.
BTCUSD is currently traded at, I would say a key pivot level on the daily picture; indeed
the 41'800/42'000 area, should be seen, on a daily closing basis as an important level for
further development.

This area (41'800) coincides with the middle level of the 3rd black candle which has been triggered
by yesterday's price action with a closing level within the clouds @ 40'596.
A failure to recover, hold and close above the 42'000 would add further selling pressure in the cards in opening
the door for lower levels, targeting first the clouds breakout ahead of 37'904 (61.8% Fibonacci retracement of the
28'600-2956 rally.
A successful recovery would put the focus on the 44'000 area, being both former minor and fragile uptrend line support
(in green) and also KS .
Very important to note that, strategically speaking we are currently in a broad bearish trend and any recovery should only be
seen as a corrective move for the time being.
ONLY A CLEAR BREAKOUT OF THE ONGOING DOWNTREND LINE RESISTANCE, WHICH ALSO COINCIDES ROUGHLY WITH THE TOP OF
THE DAILY CLOUDS WOULD FORCE TO A VIEW REASSESSMENT OF MY BEARISH VIEW

That's why, any long tactical exposure (countertrend) should be closely monitored and managed with tight trailing stop losses !!!
Good luck and have a nice day
All the best and take care
Last but not least, please do not hesitate to like my idea if you find my analysis valuable for you. Many thanks in advance.
Kind regards.
Ironman8848
Technical analyst Expert since 1991. Member of the Swiss Association of Market Technicians (SAMT).
https://ironman8848.com/VIP/