Hello Traders!
Today’s chart update will be on BTCUSD where we have a parabola forming, closing on a key Fibonacci retracement level indicating a probable blow of top.
Points to consider,
- Trend broke key resistance - .382 Fibonacci
- Structural resistance in confluence with .618 Fibonacci
- Strong support from 20 week MA
- RSI entering overbought
- Stochastics in upper regions
BTC managed to break key resistance with a valid retest confirming the S/R flip on the .382 Fibonacci level before taking of further. The structural resistance can be the potential target for the parabola as this level is in confluence with the .618 Fibonacci.
The RSI has broken key resistance and now has entered overbought conditions on the daily timeframe. The Stochastics is currently in the upper regions, it can stay trading here for an extended period of time, however lots of stored momentum to the downside.
The 20 week Moving Average as a very good visual guide as it has held significance as support since bitcoins initial bull move, a break will essentially indicate a probable reversal.
Overall, in my opinion, BTCUSD is in the latter part of the parabola, its apex ends exactly at the .618 Fibonacci where the potential reversal may occur. The 20 week MA is a strong indication of the current direction of this trend, a break of this will greatly increase the probability of a correction, which is imminent at some point.
What are your thoughts?
Please leave a like and comment,
And remember,
“Trading mastery is a state of complete acceptance of probability, not a state of fight it.”
― Yvan Byeajee
Today’s chart update will be on BTCUSD where we have a parabola forming, closing on a key Fibonacci retracement level indicating a probable blow of top.
Points to consider,
- Trend broke key resistance - .382 Fibonacci
- Structural resistance in confluence with .618 Fibonacci
- Strong support from 20 week MA
- RSI entering overbought
- Stochastics in upper regions
BTC managed to break key resistance with a valid retest confirming the S/R flip on the .382 Fibonacci level before taking of further. The structural resistance can be the potential target for the parabola as this level is in confluence with the .618 Fibonacci.
The RSI has broken key resistance and now has entered overbought conditions on the daily timeframe. The Stochastics is currently in the upper regions, it can stay trading here for an extended period of time, however lots of stored momentum to the downside.
The 20 week Moving Average as a very good visual guide as it has held significance as support since bitcoins initial bull move, a break will essentially indicate a probable reversal.
Overall, in my opinion, BTCUSD is in the latter part of the parabola, its apex ends exactly at the .618 Fibonacci where the potential reversal may occur. The 20 week MA is a strong indication of the current direction of this trend, a break of this will greatly increase the probability of a correction, which is imminent at some point.
What are your thoughts?
Please leave a like and comment,
And remember,
“Trading mastery is a state of complete acceptance of probability, not a state of fight it.”
― Yvan Byeajee