Technical analysis update: BTCUSD (22nd November 2021)
Last week we correctly predicted bearish breakout below the neutral zone. We also noted that we expected retest of 55 000 USD price level (BTCUSD stopped its decline at 55 640 USD). Since then price action continued to be choppy. We think it is possible for BTCUSD to retest 55 000 USD price level again in the following days. Technical analysis supports this view as technical indicators point to bearish conditions in the market.
We recently pointed out possible double top being formed:
Recent developments seem to confirm this development. However, we would be forced to change our stance if price retraced back into neutral zone depicted on the main chart.
We also pointed out (several times over past two months) decreasing volume in BTCUSD while price was climbing higher:
We noted that new buyers were increasingly harder to find. After that, drop in price followed.
Technical analysis - daily time frame
Daily time frame shows bearish developments. RSI is bearish and same applies to MACD and Stochastic. Indeed, MACD is performing bearish crossover which we expect to be accompanied by further selling pressure. However, ADX contains low value which suggests that current trend is either neutral or very weak (this coincides with ADX on weekly time frame). Because of that we expect price to move sideways for little longer before finally going lower.
Technical analysis - weekly time frame
RSI failed to perform bullish crossover and instead it reversed to downside. ADX continues to decline which suggests that bullish trend of higher degree has most likely peaked and trend is becoming neutral. MACD remains in bullish territory, however, it started to flatten little bit. Stochastic also remains in bullish area. Although, it already performed bearish crossover. In general, weekly time frame flashes warning signs for BTCUSD as it suggests previous bullish trend is becoming neutral.
RSI's failure to penetrate 70 points into bullish territory on weekly time frame:
Support and resistance
Major support level sits at 28 600 USD. Major resistance level lies at 69 000 USD. Support 1 appears at 52 956 USD. Support 2 lies at 48 834 USD. Support 3 is at 42 900 USD and then Support 4 is at 39 573 USD. Resistance 1 lies at 59 603 USD while Resistance 2 sits at 64 895 USD.
Psychologically important price levels
From psychological standpoint there are few other price levels that are important. These are respectively: 70 000 USD, 60 000 USD, 55 000 USD and 50 000 USD.
Our previous idea from 16th November 2021
Disclaimer: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as basis for taking any trade action by individual investor. Your own due dilligence is highly advised before entering trade.
We recently pointed out possible double top being formed:
We also pointed out (several times over past two months) decreasing volume in BTCUSD while price was climbing higher:
Technical analysis - daily time frame
Daily time frame shows bearish developments. RSI is bearish and same applies to MACD and Stochastic. Indeed, MACD is performing bearish crossover which we expect to be accompanied by further selling pressure. However, ADX contains low value which suggests that current trend is either neutral or very weak (this coincides with ADX on weekly time frame). Because of that we expect price to move sideways for little longer before finally going lower.
Technical analysis - weekly time frame
RSI failed to perform bullish crossover and instead it reversed to downside. ADX continues to decline which suggests that bullish trend of higher degree has most likely peaked and trend is becoming neutral. MACD remains in bullish territory, however, it started to flatten little bit. Stochastic also remains in bullish area. Although, it already performed bearish crossover. In general, weekly time frame flashes warning signs for BTCUSD as it suggests previous bullish trend is becoming neutral.
RSI's failure to penetrate 70 points into bullish territory on weekly time frame:
Support and resistance
Major support level sits at 28 600 USD. Major resistance level lies at 69 000 USD. Support 1 appears at 52 956 USD. Support 2 lies at 48 834 USD. Support 3 is at 42 900 USD and then Support 4 is at 39 573 USD. Resistance 1 lies at 59 603 USD while Resistance 2 sits at 64 895 USD.
Psychologically important price levels
From psychological standpoint there are few other price levels that are important. These are respectively: 70 000 USD, 60 000 USD, 55 000 USD and 50 000 USD.
Our previous idea from 16th November 2021
Disclaimer: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as basis for taking any trade action by individual investor. Your own due dilligence is highly advised before entering trade.
Trade chiuso: obiettivo raggiunto
