Currently in a broad bear trend channel, roughly in the middle of the clouds and trying to hold above on a daily basis above the Tenkan-Sen or Conversion line @ 56’463.
BTCUSD remains under selling pressure and for the time being we saw, over the last couple of sessions, successive failures to recover, firstly above the Mid Bollinger
Band, which, as already mentioned several times, should be seen as a good barometer which will help you to jauge the temperature… ( Bullish above and bearish below !)
RSI below 50, @ 45.10
In addition, the clouds should also be watch at very carefully; indeed, only a clear sustainable upside breakout of the top of the clouds (around 61’000 & Kijun-Sen), on a daily closing basis would neutralise the ongoing downside risk, calling for lower levels, firstly towards the bottom of the clouds, currently around 53’000. This level should also be seen as the first significant support area , already tested successively three times last week…
A failure to stay and hold above 53’000 would put the focus on the former uptrend support line (in green) currently around the psychological level of 50’000.
Last but not least, do not forget, that the double top formation has been validated by the breakout of its trigger level @ 57’500 and the technical target of this formation is @ 46’000.
Yesterday’s rally towards an intraday high of 59’105 has once again been short lived… the reversal has been triggered by a long black candle ( bearish engulfing pattern) which pushed the BTCUSD lower towards the H4 clouds support area . Please note that the Kijun-Sen, currently in the middle of the clouds @ 56’280 hold, for the time being and should be seen as an important support level on this time frame.
Levels to watch on H4 are the following :
downside : 56’000
upside : 57’300 / 57’500
RSI @ 49.98
Currently below the clouds, RSI below 50 @ 47.27
Watch the clouds resistance area around 57’500 which corroborate my view on H4 and D1 above mentioned.
MBB is slightly below the clouds and Kijun-Sen in the middle of the clouds.
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