BTC/USD Analysis - Support around $7500?

coinsholar (31)in #analysis • 6 years ago (edited)

Weekly

We begin a new week which means another candle closed and new one opened. This opener is far from appealing with red being seen across the board. We need to keep in mind that this is a red candle after two relatively large green candles. We need to let BTC get to where it needs to go organically and not just a straight moonshot like back in Nov/Dec 2017 (although it would be nice).

I believe as long as this does not turn into an engulfing candle, we are safe for now. Best scenario here would be a bounce back above the weekly Tenkan and hold it for support. That would be an amazing bull signal.

RSI is still in the neutral zone with Stoch continuing to rise nicely. It's okay that Bitcoin has its price hiccups. Let it happen.

Daily

Dropping down to the daily, we see the nitty-gritty of this red candle from today. It punctured through support around $7800 USD which was my target for a possible bounce. Bitcoin said "NOPE".

There are essentially 3 more safety nets before we get into wee-woo panic mode. The first being the previous resistance at about $7500 USD. Second, support off the Tenkan at $7300. Third, Kijun/Cloud support at roughly $7100. If you were to short, these might be safe targets.

Almost oversold Stoch leads me to think we may see a bounce at $7500 mostly likely of the three support areas I mentioned. A bounce off 50 for RSI would be nice.

4 Hour

Zooming in, we see the Tenkan and Kijun converging which is not good for bullish sentiment. I highlighted the consolidation zone from $7500 down to $7300 USD. This may be a great place for bulls to reload. Both Stoch and RSI are within oversold conditions. This does not promise that a reversal will be soon, just merely suggests that.