Cryptocurrencies

Technical analysis BTC / USD

BTC seen from the 1D timing we can see how the price has finally broken the upward wedge of the first trend momentum, just as I mentioned in my last update 1 week ago, the price will now start a 1 – 5 correction forming a downward wedge in the smaller figure, the first demand zone is located within the price range of 9161 – 9281, indicated within the chart by the green rectangle, the second demand zone is located within the price range of 8315 8445, also indicated by a green rectangle.

BTC seen from the 4H timeline we can look more closely at the current candlestick movement where we see how the price has failed to break the resistance located at 10400 which along with 10700 form a key resistance level, the structure has drawn a double top in the upper zone, starting an accelerated sale once we have broken the neck line, currently the price is forming the wave 2 momentum of this correction, we have the supply zone located within the price range of 10051 – 10178, however, this accelerated selling pattern could leave no liquidation fuse in that range and immediately move to a panic selling of impulse 3 towards 8700, to finally continue falling slowly towards the second demand zone mentioned above that coincides with the diagonal support of the trend, this is the most important line of the current price movement, so we must always keep it in mind.

In the chart above we can see how the candlestick structure is forming a reversal pattern known as inverted SHS, currently the price should form the right shoulder of the figure, this correction movement is the number (2) impulse wave in EW of a long bull market ahead.

In conclusion, the price is going to continue to fall below 9000, the demand areas I have plotted in the charts above, if the price recovers through a correct flip the level of 10200, this bearish scenario is invalidated and the price should continue to rise, therefore, I recommend you to be very attentive to the price action in 4H and 1D and always remember to place your stop losses to avoid possible invalidations during the movement.

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About the author: mrbullishsail
Technical Market Analyst Crypto trader

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