dporeil

BTC still bearish 4hr, What I'm watching for bottom indication!

BITMEX:XBTUSD   Bitcoin / US Dollar Perpetual Inverse Swap Contract
BTC is still in a 4hr downtrend as you can see on the chart displayed so no bullish entries can be considered by myself until a break of the 4hr high of $10,658 occurs. Until this happens I will remain bearish , but still cautious to the several indicators pointing out that a potential bottom is close.

Things to look out for are as follows:

1- RSI is approaching oversold conditions.
- if we were to reach oversold conditions we would see price action most likely around the 200EMA or macro trend line support zone further giving the likelihood of an oversold bounce strength.

2 - Declining volume on each leg down
- as you can see on the chart, we are witnessing less bear volume on each LH,LL formation. This could be indicating that bears are slowly losing momentum which will not favour them if we approach oversold RSI conditions with 200EMA and trend line support.

3- Daily uptrend still in tact
- Until $8,940 is lost, we are still in a daily uptrend

What am I watching for next:

The main two things that I will be keeping my eye on in the short term are price action and volume. An increase in bull volume with a break of the 4hr downtrend would create a bullish environment in my opinion and I will start positioning myself back into the market upon this occurring.

I hope that this chart has given a few of you a good idea of what I am looking at and possibly some good trade plans to use upon certain breakouts if they occur.
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