Topdown Analysis Of BTCUSDT Using Support And Resistance Strategy And RSI Indicator As A Confluence

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Hello great minds,

It is a great opportunity to appear before you all today to share my analysis on bitcoin.

I believe you are all doing perfectly fine and are enjoying your activities in the community as you actively share in steemit promotion across various social media platform.

Bitcoin as we know it, is the father of all other cryptocurrency and it is worth carrying an analysis on, since it is the driver of all other cryptocurrency in the cryptospace.

Today, I will sharing my analysis of btcusdt and I will be beginning from the monthly timeframe.

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ANALYSIS USING SUPPORT AND RESISTANCE STRATEGY

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My analysis often begin from the higher timeframe and it moves to the lower timeframe.

On the higher timeframe like the monthly timeframe, I identify market trends, and on other timeframe I search for key market levels and also search for entries into the market.

The above screenshot is that of btcusdt on the monthly timeframe as we can all confirm.

And from the above screenshot, we can see that there are less candles on this timeframe, and this is because each candle formed on this timeframe takes an activity period of one month.

Also on this timeframe, we can notice that the market trend is easily identified, and from the screenshot above, we can see that Bitcoin market is bullish overall.

I then continued my analysis by moving to the weekly timeframe and on this timeframe, I could see the market more clearly, I could see the formation of several candles as each candle is being formed within the trading period of 7days.

And looking carefully, I was able to identify another key level and this level is functioning as a support level to the price chart, and the market is expected to be rejected whenever it trades to this level.

And we can see the validity of this level as the market made noticeable reactions when it trades towards this level, which shows that this level is a key level in the market.

I then moved to the daily timeframe to continue my analysis, and on this timeframe, I could see lots of candles, i could see the formation of several bullish and bearish candles which indicates the presence of buyers and sellers in the market.

And from the screenshot, we can see that the market is in a bullish phase, as it kept forming new highs in the market.

And getting to the 4hr timeframe, I could see lots of noise in the market, as the buyers and sellers struggle to drive the market to their preferred direction.

And looking at the market above, I was able to identify a key level and this level will be functioning as my bullish order block and I expect the market to continue it's bulllish move from this level.

I then decided to move to the 2hr timeframe in search of my entry into the market, and from the above screenshot, I could see the market more clearly.

I could see some bearish candles in the market and I expect the market to retrace to mitigate this bullish order block, and before placing my entry, I decided to search for confluence using relative strength index indicator.

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CONFLUENCE USING RELATIVE STRENGTH INDEX INDICATOR

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The relative strength index indicator is an indicator that helps to identify overbought and oversold market.

When a market is spotted to be overbought, it is a bearish trend reversal signal and when it is oversold, it is a bullish trend reversal signal.

An overbought market can be spotted when the rsi crosses above the 80% line and an oversold market is detected when the market crosses below the 20% line.

Applying the rsi to the monthly timeframe, I could see the market more clearly and I realised that the market is being overbought, and an overbought market is detected when the rsi cross above its 80% line.

And an overbought market is understood to mean a bearish trend reversal of the market, that is, a change in market strength from the buyers to the sellers.

And moving to the daily timeframe, I could see that the market is being overbought, and as said earlier, an overbought market is one that is detected when the rsi crosses above its 80% line.

And an overbought market is one that signals the weakness of the buyers and the strength of the sellers, and as such, we can expect to see a bearish rejection in the market.

And as such, I decided to move to the 2hr timeframe in search of entry into the market

And moving to the 2hr timeframe, I expect the market to move towards this orderblock and then I expect to see a bullish move.

And as such, I decided to place my entry on the closest orderblock, and my take profit was placed on the closest resistance level to the price chart.

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CONCLUSION

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Bitcoin is the father of all cryptocurrency and it is the driver of all other altcoins in the cryptomarket.

I have shared my analysis on the market and I expect to see a momentary bearish retracement and a bullish continuation move.