BTCUSD Analysis Today 16.05.2020
Hi guys, welcome back!
I'm delighted to say that if you followed my last post on here where I predicted a short term sell for BTC/USD, you'd have bagged some profits. I'd be doing something similar today. Leggo!
TimeFrame: H4
Tools:
Green Zone: Consideration Zone
Blue Box: Support and Resistance Zone
Green Line: Dynamic Support
Looking at the chart today, I noticed BTC rallied from somewhere around $8200 to somewhere around $9900, then, to $9100 before moving up to $9400, the area the price sits currently.
Quite a few rejections have happened in the blue zone I marked out. But I believe the zone will most likely reject BTC price from going up this time.
Usually, I follow a rule that tells me not to trade a breakout except it's retests and regenerates. Only then can one pick a good and appropriate entry and also be sure it's not a fake out.
From the above picture, it's quite clear that; [1] Price broke the blue zone on its way from $9900 to $9400 and has retested the zone twice with no conviction by the bulls. [2] The dynamic support is also preventing the price from breaking downwards
In my opinion, if it breaks downward, it would most likely be massive.
Picking a side..
Today, just like every other days, it is a sell. I kinda feel uncomfortable with taking just sell trades on Bitcoin.
As usual, the reasons for my position;
Downtrend; Double Top has formed on D1 Time Frame as price refused to make a new high.
Price; Price has retested the resistance zone twice and has refused to break.
Volume; Affrims that a retest and regeneration is going on
Magnet; A price magnet is around $8200
Just in case anything goes wrong, I'll close the trade once a long candle forms and closes above $9700.
My TPs would be: $9100, $8700 and $8200.
Disclaimer: This is not a trading advise and I won’t be held accountable for any losses incurred during trading.
Safe Trading!