Good morning !
Today we are going to look at the Daily picture which is showing you the magical power of the clouds.
Indeed, yesterday’s price action triggered a second long black candle ( bearish signal continuation) which pushed the BTC overnight towards a low of 40’193 which coincides roughly to the bottom of the clouds support zone !
Magic isnt’it 🙂
I would answer, not really, it is factual…
Indeed, in looking carefully at the recent price action on this daily chart (see my yesterday’s analysis below BTC – D1 – CLOUDS UNDER ATTACK), we can clearly see a downside acceleration following the breakout of the “minor” daily uptrend support, which triggered this overnight selloff !
Indeed, strategic pressure remains to the downside and in order to neutralize this risk, the BTC should quickly recover and hold, at least above 44’000 !
So far, recent price action is purely corrective, providing, very short term tactical buying opportunity which, if initiated, should be, once again, monitored in using trailing stop losses !!!
Looking at the weekly picture, the Mid Bollinger Band , currently @ 40’770 has been touched and this level should also be seen as a good barometer on a weekly closing basis in this time frame.
On D1, watch upcoming price action, currently neutral, roughly in the middle of the clouds; a breakout, one way or the other of the daily clouds (40000 on the downside and 45600 on the upside), will give the direction for further development, targeting respectively :
on the upside, former highs around 49’000
on the downside, the 36’000-35’000 area, being the weekly clouds bottom and also a former congestion zone seen between May to July 2021 in W1 time frame too.
Watch intraday time frames to get early signal (s) which will help you to validate or invalidate scenarios expected previously exposed.
Last but not least, if you like my analysis and you find it valuable for you, please do not forget to like it and also for those who does not follow me yet, please also add Ironman8848 on your following list.
You can also follow me on twitter
“May your long goes up and your short goes down”
Have a great day, take care and all the best
All views expressed on my analysis are my own and do not represent the opinions of any entity, whatsoever with which I have been, I am now or I will be affiliated with. Any action you take upon the information on those analysis is strictly at your own risk and should not be considered as an advisory. The author assumes no responsibility or liability for any errors or omissions in the content of his analysis. The information contained is provided on an «as is» basis, with no guarantees of completeness, accuracy, usefulness or timeliness and without any warranties of any kind whatsoever, express or implied.