XBT INTRA-DAY PRICE ACTION UPDATE
Welcome to another episode of our favourite show - bitcoin brought to you by FELIX!
What has occurred since our last XBT/BTC breakdown ?
- I stated that a break above the 3427$ resistance right under the descending wedge will have us retesting 3200$ support and that a break above this level will lead to 3610$. Initially, we stated in our FINEX breakdown that finex could test highs of 3800$ before dropping again. During this time, I also updated our XBT trade on the priority channel by stating that a break above 3427$ would lead to 3610$. Once this level was reached, as expected, we got a rejection from this level back down to support of 3427$.
Now what is the next expected move for XBT ?
1 HOUR CHART BREAKDOWN
- On the 1 hourly chart, I expect further decline to 3350-3300$ zone. Previously, this zone was a support zone and for us to maintain movement within the 3600-3200$ price channel this will be necessary. We can see that XBT has been using the resistance line of wedge as support and refused to get back inside the wedge. Now we will probably see a rejection from the 37 level on the hourly RSI and also a rejection from 40 level on RSI/ROC on the hourly to the 29 level, which historically acts as support.
- Lets take a look at our moving averages on the hourly time frame and see how they are reacting ? We can see that the 200 EMA stands as resistance at 3610$ and we can also see a bearish crossover between the MA’s.
- I expect price to pull back into the descending wedge and use 3301-3350$ as support.
4 HOURLY CHART BREAKDOWN
- Expect a pull back to the 37 level on RSI and I believe this should coincide with a retracement to 3300$. If this level is broken, then we break out of descending wedge to 3200£ support. None the less, either of these levels will act as support due to our key momentum indicator on the 4 hourly (RSI/ROC), showing that support is most likely at the 55 level.
DAILY CHART BREAKDOWN
- Out of all our timeframes, the daily is looking most bearish as it is at resistance of 55 level on ROC/RSI. This is in line with the fact that the black trend line indicates a resistance on ROC/RSI. Moreover, RSI is at major resistance level on the daily (historically speaking) of 37 level (this level was previously a supporting level).
- The daily chart is showing us that the next couple of days could turn very bearish for BTC and we could well make our way to initial end of week targets of 2950-3060$.
HOW CAN I TRADE THIS INFORMATION ?
- If you are to go short at current price, please ensure you place stop loss right above 3460$ (tight) and i would not recommend a loose stop loss in this situation due to volatility.
- Conservative take profit is at previous low of 3200$ and risky take profits lie between 3063$ and 2950$.
- IF YOU HAVE INTELLIGENTLY FOLLOWED OUR WEEKLY TRADING OUTLOOKS AND SHORTED AT 3610$, JUST COMFORTABLY MOVE SL INTO PROFIT OR ENTRY AND LET IT RUN!
ENSURE TO FOLLOW OUR INSTAGRAM PAGE DOWN BELOW AND CLICK THE LINK IN THE BIO FOR OUR VIP CHANNEL TO STAY UP TO DATE!
Welcome to another episode of our favourite show - bitcoin brought to you by FELIX!
What has occurred since our last XBT/BTC breakdown ?
- I stated that a break above the 3427$ resistance right under the descending wedge will have us retesting 3200$ support and that a break above this level will lead to 3610$. Initially, we stated in our FINEX breakdown that finex could test highs of 3800$ before dropping again. During this time, I also updated our XBT trade on the priority channel by stating that a break above 3427$ would lead to 3610$. Once this level was reached, as expected, we got a rejection from this level back down to support of 3427$.
Now what is the next expected move for XBT ?
1 HOUR CHART BREAKDOWN
- On the 1 hourly chart, I expect further decline to 3350-3300$ zone. Previously, this zone was a support zone and for us to maintain movement within the 3600-3200$ price channel this will be necessary. We can see that XBT has been using the resistance line of wedge as support and refused to get back inside the wedge. Now we will probably see a rejection from the 37 level on the hourly RSI and also a rejection from 40 level on RSI/ROC on the hourly to the 29 level, which historically acts as support.
- Lets take a look at our moving averages on the hourly time frame and see how they are reacting ? We can see that the 200 EMA stands as resistance at 3610$ and we can also see a bearish crossover between the MA’s.
- I expect price to pull back into the descending wedge and use 3301-3350$ as support.
4 HOURLY CHART BREAKDOWN
- Expect a pull back to the 37 level on RSI and I believe this should coincide with a retracement to 3300$. If this level is broken, then we break out of descending wedge to 3200£ support. None the less, either of these levels will act as support due to our key momentum indicator on the 4 hourly (RSI/ROC), showing that support is most likely at the 55 level.
DAILY CHART BREAKDOWN
- Out of all our timeframes, the daily is looking most bearish as it is at resistance of 55 level on ROC/RSI. This is in line with the fact that the black trend line indicates a resistance on ROC/RSI. Moreover, RSI is at major resistance level on the daily (historically speaking) of 37 level (this level was previously a supporting level).
- The daily chart is showing us that the next couple of days could turn very bearish for BTC and we could well make our way to initial end of week targets of 2950-3060$.
HOW CAN I TRADE THIS INFORMATION ?
- If you are to go short at current price, please ensure you place stop loss right above 3460$ (tight) and i would not recommend a loose stop loss in this situation due to volatility.
- Conservative take profit is at previous low of 3200$ and risky take profits lie between 3063$ and 2950$.
- IF YOU HAVE INTELLIGENTLY FOLLOWED OUR WEEKLY TRADING OUTLOOKS AND SHORTED AT 3610$, JUST COMFORTABLY MOVE SL INTO PROFIT OR ENTRY AND LET IT RUN!
ENSURE TO FOLLOW OUR INSTAGRAM PAGE DOWN BELOW AND CLICK THE LINK IN THE BIO FOR OUR VIP CHANNEL TO STAY UP TO DATE!
Comment:
XBT INTRA-DAY UPDATE
We saw support used as 3280$ but this only took us back to resistance levels on our momentum indicators and we also saw the use of MA’s as resistance on the hourly chart.
What can we see on the hourly charts for XBT ?
- We can see that higher lows are being created but we are currently at resistance from 3360$ and it looks like we could well see some very bearish activity over the next couple of hours to 3250$ at the least in order to see momentum indicators such as RSI/ROC at support levels of 40, so that we can try for another test to break above the 50 level on this indicator. RSI is also showing resistance from the infamous 37 level and a retest of the 15 level on RSI for the hourly charts could be evident.
What can we see on the 4 hourly charts ?
- We can see that on the whole, the 4 hourly charts are a lot more bullish than the hourly charts. This is evident in the fact that RSI/ROC currently lies at support and is heading towards the black line, which is an average line of support on this indicator. None the less, it seems as though MA is also being used as resistance on the 4 hourly charts like in the 1 hourly charts.
What can we deduce ?
- We can expect further wick drops into the 3250$ zone on the hourly before finding support and then moving on to test highs of 3427$ (first major resistance) and I feel this will be broken through for us to meet previous resistance of wedge at 3610$. Thereafter, REAL bearish activity can start from these levels and then we can use these support zones as downward targets as low as 3063-2950$ on an intra-day basis.
- REMEMBER OUR LONG TERM TARGETS TO THE DOWNSIDE ARE MUCH GREATER THAN THE UPSIDE POTENTIAL SO IT MAY BE A GOOD IDEA TO STAY SHORT BIAS RIGHT NOW AND SHORT FROM HIGHS RATHER THAN BUYING AT LOWS ON MARGIN.
We saw support used as 3280$ but this only took us back to resistance levels on our momentum indicators and we also saw the use of MA’s as resistance on the hourly chart.
What can we see on the hourly charts for XBT ?
- We can see that higher lows are being created but we are currently at resistance from 3360$ and it looks like we could well see some very bearish activity over the next couple of hours to 3250$ at the least in order to see momentum indicators such as RSI/ROC at support levels of 40, so that we can try for another test to break above the 50 level on this indicator. RSI is also showing resistance from the infamous 37 level and a retest of the 15 level on RSI for the hourly charts could be evident.
What can we see on the 4 hourly charts ?
- We can see that on the whole, the 4 hourly charts are a lot more bullish than the hourly charts. This is evident in the fact that RSI/ROC currently lies at support and is heading towards the black line, which is an average line of support on this indicator. None the less, it seems as though MA is also being used as resistance on the 4 hourly charts like in the 1 hourly charts.
What can we deduce ?
- We can expect further wick drops into the 3250$ zone on the hourly before finding support and then moving on to test highs of 3427$ (first major resistance) and I feel this will be broken through for us to meet previous resistance of wedge at 3610$. Thereafter, REAL bearish activity can start from these levels and then we can use these support zones as downward targets as low as 3063-2950$ on an intra-day basis.
- REMEMBER OUR LONG TERM TARGETS TO THE DOWNSIDE ARE MUCH GREATER THAN THE UPSIDE POTENTIAL SO IT MAY BE A GOOD IDEA TO STAY SHORT BIAS RIGHT NOW AND SHORT FROM HIGHS RATHER THAN BUYING AT LOWS ON MARGIN.
1 HOURLY BREAKDOWN
Guys, I stated that we were looking to find support at 3350-3300$ level but instead support was found at the 3370$ level. This was in line with a rejection from 37 level on RSI as stated in our latest breakdown and we saw support at 15 RSI on the hourly. We also found support at the 40 level on RSI/ROC and as can be seen in our chart, this level is a continues support. We failed to break back into the wedge but rather just some deceiving price action.
4 HOURLY BREAKDOWN
I stated in our most recent breakdown on the 4 hourly section that ‘Expect a pull back to the 37 level on RSI and I believe this should coincide with a retracement to 3300$. If this level is broken, then we break out of descending wedge to 3200£ support. None the less, either of these levels will act as support due to our key momentum indicator on the 4 hourly (RSI/ROC), showing that support is most likely at the 55 level.
What went wrong ?
Well, I was right in believing that first instance of support on the 4 hourly chart will come at 37 level on RSI but this only coincided with 3370$ rather than the 3300$ I expected. Now, on our updated chart we can see that we are creating higher lows and have not broken back into descending wedge. Price gaps to the bullish direction at least to 3610$ will be filled again. Once this occurs, if the bears are really in control, price should be back at oversold regions and away from support zones.
For the next major knock to occur, 200 EMA on the hourly needs to be used as resistance, and currently it still stands at 3610$.