BTCUSD Technical Analysis - Weekly - June 11, 2018

BTCUSD Technical Analysis - Weekly - June 11, 2018 

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Hello and welcome to my first TA performed on Steemit.  Although this is my first time using Steemit, in the past I have provided TA for personal clients in cryptocurrency, equity and options trading.  MY goal here is to provide a detailed yet SIMPLE analysis aimed towards those who are new to technical analysis in general and are looking for an easier-to-follow methodology than some of the more complicated TA styles.

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Let’s look at the weekly BTCUSD chart. As we can see here, the flag pattern which has been forming since January is still in play as support has not yet been broken at $6500.  The flag is extremely close to reaching its end, where we should expect to see a major breakout either up or down. From this level it appears that a POSITIVE breakout is most likely to occur due to the following factors: 

1. Support has been touched and has rebounded THREE times without breaking: February, April and June. This is a very BULLISH indicator in classic TA. 

2. RSI is at an all-time low for 2018. It is slowly and steadily approaching 40, which indicates that BTC is currently oversold and is due for a large buy in. 

3. The price is below the 50-week MA for only the second time since OCTOBER 2016. The first time was just back in late March, where we saw a very positive breakout. This is unprecedented and extremely BULLISH.     

However there is another very likely scenario in play: The support at $6500 could break, and in this case the next level of support comes into play at $5400 as per the candles from November 2017. In my opinion this will complete an extremely healthy BTC correction and at this point there really is nowhere to go but up!    

Conclusion: If you are a firm believer in the technology of Bitcoin, how can you not be happy with this correction? These lower lows only indicate the great likelihood for even higher highs when this correction is completed. Be excited! Patience is key… 

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Legal Disclaimer: I am not a financial advisor nor is any content in this article presented as financial advice. The information provided in this post and any other posts that I make and any accompanying material is for informational purposes only. It should not be considered financial or investment advice of any kind.  In fact, this should only be taken as an OPINION and not a predictor of the future. One should consult with a financial or investment professional to determine what may be best for your individual needs.