Ironman8848

BTCUSD-D1/H4-NEGATIVE CONFIGURATION...

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
DAILY (D1)
The breakout of the psychological 40'000 support level triggered a downside acceleration which pushed sharply down the Bitcoin towards a low so far of 35'111 !

There is something very important to highlight : Last daily closing level (36'495) was below the weekly clouds that you can see on overlay !!!

Such kind of price action should be seen as a very negative signal for the upcoming week !!!


Indeed, broad picture becomes more and more bearish and in order to neutralise this ongoing downside risk, the Bitcoin should at least, on a daily basis closing level:

1) recover and hold above the tenkan-Sen, currently @ 39'468 which also, roughly coincides with the former low (39'558) reached on Jan 10th, 2021 and Eeen if this recovery occurs, that only will be the first step for a confirmation of a potential trend reversal
2) next important resistance being the Mid Bollinger band (@ 42'179) which as already mentioned several time, should be seen as "THE BAROMETER"
3) then the Kijun-Sen (@ 42'915)
4) and last but not least the DAILY CLOUDS RESISTANCE ZONE , currently between 49'320 and 55'480

GLOBALLY THE DAILY TIME FRAME REMAINS NEGATIVE CALLING FOR FURTHER DOWNSIDE TOWARDS THE 30'000 AREA FIRST AND THEN FOR A RETEST OF THE 28'600 AREA WHICH WAS THE STARTING POINT OF THE BIG RALLY (28'600-69'000) !!!


4 HOURS (H4)

Persisting ongoing downside price action; indeed, RSI is still converging to the downside and there is no positive signal detected yet in this time frame.

In this H4 time frame, recent and current price action is telling us that it is currently a SELL on rally mode and not a buy on dips yet, having in mind a STRATEGICALLY approach

For tactical short term trading strategies (countertrend) I would strongly suggest to watch and monitor very closely, shorter time frames, which will allow you to act accordingly in protecting LONG TACTICAL EXPOSURE, in respecting strictly a disciplinated RISK MANAGEMENT,
in putting in place trailing stop losses which is one of the GOLDEN RULES when you act countertrend !!!!

Have a nice weekend and take care

Kind regards from Switzerland :-)

Ironman8848 & Jean-Pierre Burki

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